According to a report by China Daily on January 25, 2026
China Tourism Group Duty-Free (CTG Duty-Free) has reached an agreement to acquire DFS Group’s travel retail business in Hong Kong and Macao, along with related intangible assets on the Chinese mainland, in a deal valued at up to $395 million, the company announced Friday.
The acquisition will be executed through CTG’s wholly owned subsidiary, China Duty Free International Ltd, and marks a significant step in the company’s expansion within the Greater Bay Area.
As part of the transaction, LVMH, which holds a majority stake in DFS, and DFS co-founder Robert Miller will participate in a capital increase by subscribing to newly issued H shares listed in Hong Kong. CTG and LVMH have also signed a memorandum of understanding to explore future collaborations on product sales, brand promotion, and customer experience in China.
“This acquisition aligns with our ambitions to create a global platform promoting China-chic brands and expand our international presence,” said Luke Chang, executive director and president of CTG Duty-Free. “It will further strengthen our network across the Greater Bay Area and advance the promotion of Chinese brands globally.”
CTG Duty-Free currently operates more than 200 stores across 100 cities in China and overseas. Despite a 7% decline in third-quarter revenue for the 2025 fiscal year to 39.86 billion yuan ($5.72 billion) and a 22% drop in net profit to 3.05 billion yuan, the company has recorded strong growth in Hainan province, driven by the zero-tariff offshore duty-free policy. Notably, Hainan stores achieved over 300 million yuan in daily sales on Jan. 1, following a surge of 250 million yuan on Dec. 18.
DFS, meanwhile, reported modest improvement in sales trends in Hong Kong and Macao in Q3 2025, supported by operational optimizations. LVMH’s specialty retail division posted a 7% increase in revenue year-on-year in the same quarter.
“This operation underscores our confidence in the long-term potential of the Chinese market,” said Michael Schriver, president of LVMH for North Asia.