Li & Fung, the world's largest export trading company, plans to buy German based retailer KarstadtQuelle AG in order to increase latter's Asia sourcing proportion from 68 percent to 80 percent in the next two year period.
The deal is said to running between US$100 million (HK$780 million) and US$200 million.
Li & Fung, which helps US and European companies source apparel and toys from Asia, would complete the deal next month as the company had been seeking bigger acquisition opportunities by selling bonds.
Shares of Li & Fung, which gained 17 percent this year, closed at HK$17.40 on Thursday.
By buying the sourcing operations of retailers, local importers and its rivals, Li & Fung can develop efficiencies by plugging them into its global sourcing network.
marketing@alchempro.com
