Chinese e-commerce giant, JD.com is expanding in the travel-retail channel by taking a shareholding in the North Asia business of Paris-based global duty-free operator Lagardère Travel Retail, part of France’s Lagardère Group.
JD.com and state-owned fund China Jianyin Investment (JIC) are jointly injecting USD 112 million to take respective shares of 18.6% and 3.7% in the North Asia division. It generated revenue of USD 176 million in 2020 from travel shopping and duty-free activities in Mainland China, Hong Kong and Japan. Subject to customary procedures, the deal is expected to close later this month.
The tie-up does not come as a surprise. Last fall, JD.com’s rival Alibaba Group took a stake in the world’s biggest airport retailer Dufry, with plans to jointly target the travel-retail business in China which is booming. Now it’s JD’s turn to jump in.
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