In "The Big Banks," Citigroup expects CTG DUTY-FREE to acquire DFS to strengthen its retail network in the Greater China region

Regarding China Tourism Group Duty Free Corporation (01880.HK) recently announcing plans to acquire the travel retail business of DFS in Hong Kong and Macau, as well as intangible assets in the Greater China region, for a maximum of USD 395 million in cash, Citi published a research report stating that for LVMH, the transaction aligns with market expectations for the disposal of DFS's business and has a limited impact on LVMH.

In addition, the bank believes that the acquisition will strengthen China Duty Free's retail network in the Greater China region, creating synergies with its core business in product procurement, logistics, and customer relationship management, deepening its operations in Hong Kong and Macau, and supporting the overseas expansion of Chinese high-end brands. DFS's experience in global downtown duty-free stores could also bring synergies to China Duty Free. The introduction of shareholders related to LVMH may pave the way for future luxury supply chain collaborations