ZCZC
BCN-18
HONGKONG-CHINA-INDIA-BRITAIN-MERGER
Toy story: Asia’s richest man buys Britain’s Hamleys for $88 mn
HONG KONG, May 10, 2019 (BSS/AFP) – Asia’s richest man Mukesh Ambani has
snapped up the storied British toy store Hamleys from its Chinese owners for
$88 million, the latest in a dizzying splurge of retail acquisitions.
Ambani’s Reliance Brands announced late Thursday that it had bought the
259-year-old toy retailer from the Hong Kong-listed Chinese fashion
conglomerate C.Banner International Holdings.
“The worldwide acquisition of the iconic Hamleys brand and business places
Reliance into the frontline of global retail,” Darshan Mehta, president and
CEO of Reliance, said in a statement.
Ambani, worth some $50 billion according to Forbes, initially made his
fortune in oil refining and petro-chemicals but his Reliance empire has since
branched into everything from telecoms to cable networks and tech firms.
In recent years he has massively expanded his retail portfolio, snapping
up a string of well-known brands such as Burberry, Canali, Paul Smith,
Armani, Just Cavalli and Jimmy Choo.
Ambani has said he hopes the consumer business wing of his empire will
contribute as much to his conglomerate’s earnings as the core energy business
by the end of 2028.
He is currently engaged in fierce competition with Amazon and Walmart in
an ongoing race to dominate India’s retail market.
The purchase of the much-loved Hamleys will help bolster that fight.
Best known for its enormous flagship store in London — itself a tourist
attraction that receives five million visitors a year — Hamley’s has been
expanding internationally since the mid-2000s.
Reliance already had a franchise agreement for India, running 88 stores in
29 cities but the purchase now brings him a total of 167 stores in 18
countries.
But while the brand is well-known, Hamleys has struggled. The o68 million
($88 million) price tag is almost half what C.Banner paid previous owner,
France’s Groupe Ludendo, in 2015.
BSS/AFP/HR/1135