China Tourism Group Duty Free Corp (CDF) has announced a major strategic move in the Guangdong-Hong Kong-Macao Greater Bay Area. On Tuesday, the company revealed it will acquire DFS’ travel retail operations in Hong Kong and Macao. This marks a significant step in CDF’s international expansion and aligns with its goal to promote “China-chic brands going global.”
According to a filing with the Hong Kong Stock Exchange, CDF—a subsidiary of the state-owned China Tourism Group—will purchase all issued shares of DFS Cotai Limitada. The sellers are DFS Venture Singapore and DFS Group, both owned by LVMH and the Miller family. The total enterprise value of the deal is $400 million, with CDF paying no more than $395 million in cash from internal resources.
As a result of the CDF DFS acquisition, the company will take over nine DFS outlets. These include two stores in Hong Kong—at Tsim Sha Tsui’s New Sun Plaza and Causeway Bay’s Hysan Place—and seven locations across casino resorts in Macao. As of September, these outlets were valued at $441 million. Additionally, CDF will gain exclusive rights to use DFS brand intangible assets in mainland China, Hong Kong, and Macao.
This expansion allows CDF to strengthen its service network across the Greater Bay Area. Moreover, it solidifies the company’s leadership in regional travel retail. CDF stated that the move supports its broader strategy to accelerate international business development while fulfilling its role as a central state-owned enterprise.
In parallel, CDF and LVMH have signed a memorandum of understanding to deepen collaboration. The partnership will cover product sales, new store openings, brand promotion, cultural communication, and customer experience enhancements. “This cooperation will offer mutual benefits by leveraging each party’s strengths,” the filing noted.
Furthermore, as part of the agreement, CDF will issue new shares to LVMH’s subsidiary Delphine SAS and the Miller family. Specifically, it will issue 7.33 million shares to Delphine SAS and 4.64 million to the Miller family. Together, they will hold approximately 0.57% of CDF’s total share capital.
The subscription price is HK$77.21 per share—about an 11.66% discount to Monday’s closing price. The transaction is expected to raise HK$924 million in net proceeds. CDF’s board described the deal as fair, reasonable, and in the best interests of shareholders.
Market reaction was swift. On Tuesday, CDF’s shares surged 12% in morning trading after the announcement and closed up 3.71% at HK$90.65. Meanwhile, the broader Hang Seng Index dipped slightly by 0.27%, ending at 26,487 points with HK$228.2 billion in turnover.
With this CDF DFS acquisition, the company not only expands its physical footprint but also deepens ties with global luxury leaders. As travel retail rebounds in Asia, CDF is positioning itself as a dominant force—bridging Chinese consumers, international brands, and the dynamic Greater Bay Area economy.
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