BUSINESS

China Tourism Group to Buy LVMH-Backed DFS’s Greater China Business

Published: Jan. 20, 2026 4:59 p.m. GMT+8

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Alongside the acquisition, China Tourism Group Duty Free also plans to bring LVMH in as a shareholder. Photo: VCG

China Tourism Group Duty Free Corp. Ltd. (601888.SH) plans to acquire LVMH-backed DFS Holdings Ltd.’s Greater China retail operations for up to $395 million in a tie-up aimed at overcoming a sluggish travel retail market.

Alongside the acquisition, the Chinese duty free giant also plans to bring LVMH Moët Hennessy Louis Vuitton SE in as a shareholder.

The moves underscore a strategic partnership between China’s dominant duty free operator and the world’s largest luxury conglomerate, as the two seek to leverage their respective strengths to expand their presence in key travel hubs while navigating a prolonged downturn in tourism-related spending.

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China Tourism Group Duty Free will acquire DFS Holdings' Greater China retail operations for up to $395 million, including stores in Hong Kong and Macao and exclusive rights to the DFS brand in the region.
LVMH will become a shareholder through new H-shares, and both companies signed a strategic retail partnership for product sales and expansion in Greater China.
Both firms face declines in sales and profit; China Tourism’s Q1-Q3 2025 revenue dropped 7.3% to 39.86 billion yuan ($5.7B), net profit fell 22.1%.

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Who’s Who

China Tourism Group Duty Free Corp. Ltd.: China Tourism Group Duty Free Corp. Ltd. (**601888.SH**) is China's dominant duty-free operator. It plans to acquire DFS Holdings Ltd.'s Greater China retail operations for up to $395 million, including travel retail stores in Hong Kong and Macao. This acquisition, coupled with LVMH becoming a shareholder, aims to expand its service network across the Greater Bay Area and leverage Hong Kong and Macao to promote domestic goods.

DFS Holdings Ltd.: DFS Holdings Ltd., a travel retail pioneer founded in 1960 and backed by LVMH and the Miller family, is selling its Greater China retail operations to China Tourism Group Duty Free Corp. Ltd. for up to $395 million. This move strategically partners DFS with China's dominant duty-free operator to overcome a sluggish travel retail market and leverage their strengths.

LVMH Moët Hennessy Louis Vuitton SE: LVMH Moët Hennessy Louis Vuitton SE, the world's largest luxury conglomerate, is partnering with China Tourism Group Duty Free Corp. Ltd. They are selling DFS Holdings Ltd.'s Greater China retail operations to the Chinese duty-free giant, and LVMH will become a shareholder in China Tourism Group. This partnership aims to strengthen both companies' positions in the challenging tourism-related retail market.

China Duty Free International Ltd.: China Duty Free International Ltd. is a wholly-owned subsidiary of China Tourism Group. It will facilitate the acquisition of DFS Holdings Ltd.'s Greater China retail operations by paying in cash. This move aims to expand China Tourism Group's service network across the Greater Bay Area.

Delphine SAS: Delphine SAS is a subsidiary of LVMH Moët Hennessy Louis Vuitton SE. China Tourism Group plans to issue new H-shares to Delphine SAS as part of a strategic partnership. This will effectively make Delphine SAS an equity partner in China Tourism Group's broader operations, shifting from being a sole owner of DFS Holdings Ltd.'s Greater China retail unit.

Shoppers Holdings HK Ltd.: Shoppers Holdings HK Ltd. is associated with the Miller family and, alongside LVMH subsidiary Delphine SAS, will become an equity partner in China Tourism Group's broader operations. They will receive 4.64 million H-shares from China Tourism Group, issued at HK$77.21 ($10) each.

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What Happened When

2024：: According to LVMH’s 2024 financial report, DFS’s business volume had not recovered to pre-pandemic (2019) levels, with continued sales declines in Hong Kong and Macao.

Full-year 2024：: China Tourism Group experienced double-digit declines in its performance due to ongoing pressure on core Hainan offshore duty-free business.

First three quarters of 2025：: China Tourism Group’s revenue fell 7.3%, and net profit dropped 22.1%.

December 2025：: Hainan officially launched islandwide independent customs operations, expanding the zero-tariff goods list more than threefold.

December 2025：: China Tourism Group won tenders to operate duty-free shops at Shanghai’s Pudong and Hongqiao airports via joint venture, and subsequently secured a major bid at Beijing Capital International Airport.

January 19, 2026：: The closing price used as the reference for the issuance of new H-shares by China Tourism Group to Delphine SAS (LVMH subsidiary) and Shoppers Holdings HK Ltd. is set, representing an 11.66% discount to this date's closing price.

January 20, 2026：: China Tourism Group announces, via stock exchange filing, the acquisition of DFS Holdings Ltd.'s Greater China retail operations and strategic cooperation plans with LVMH.

AI generated, for reference only