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| Hong Kong group extends global reach with French acquisition ( 28/01/2005 ) | |||||||||
A.S Watson, the retail arm of Hong Kong-based conglomerate Hutchison Whampoa Limited, is set to become a major global retailer with its bid for France's largest perfumery and cosmetic retailer Marionnaud.
The company recently offered 534 million euros for the Paris-listed retailer and completion of the transaction in March will significantly strengthen Hutchison's retail presence in Europe. The 1,226 store Marionnaud acquisition will bring A.S Watson's health and beauty store number to 5,662 making it the world's largest retail company in the sector.
A.S Watson's managing director Ian Wade said: "The Group's continuing strategic aim is to expand our footprint in Europe and Asia. France is the second largest economy in the Eurozone, and the market prospects are extraordinary.
"The opportunity to invest in Marionnaud offers an excellent opportunity to enter the French market and markets where Marionnaud already operates," Mr Wade added.
A.S Watson Group is not currently present in France, nor in most of the key markets of Marionnaud including Italy, Spain and Austria. Marionnaud appears as a natural fit for the Group's expansion strategy in Europe.
The Group last made a purchase of this scale in 2002, when it paid 1.3 billion euros for Netherlands-based Kruidvat. A.S Watson's retail network in Europe includes Belgium, Luxembourg, Germany, Poland, Hungary, Czech Republic, UK, Latvia and Lithuania.
It is also looking at markets in Ireland, Greece, Russia, South America and India and is poised to make an announcement about four new projects in the next few months. The four includes operations in two Asian countries and more chains in Europe.
"We believe we can conquer the world of health and beauty in five years," Mr Wade said in The South China Morning Post.
Related links Hutchison Whampoa Limited
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