- Weixin Zha |
China’s Fosun International Ltd may obtain full control of German fashion retailer Tom Tailor, in which the company currently holds a stake of about 29 percent.
Fosun declared to the European Commission on December 21 that it may passively obtain “de facto control” of the Hamburg-based retailer after attendance rates at past shareholder meetings decreased. Now, the EU Commission has approved the “acquisition of sole control”, according to a statement on its website on Tuesday.
Fosun currently holds 28.89 percent in Tom Tailor Holding SE, according to the retailer’s website. The remaining shares are in free float.
EU Commission gives green light on acquisition
Fosun has invested in several struggling fashion companies in the past. The company acquired the majority in Austrian hosiery manufacturer Wolford and French fashion house Lanvin in the past year. Its fashion and textile investments also include Caruso, St. John and Kutesmart, and it has also invested in companies from the tourism and financial industry.
Shares of Tom Tailor have fallen to a record low in January after a tumultuous year for the German fashion sector. The shares last traded at 2.42 euros on Tuesday - almost 80 percent down from a year ago.
Founded in 1962, Tom Tailor operates more than 1,200 stores in 31 countries, and last reported a net loss of 0.3 million euros in the third quarter of 2018.
Fosun has not yet replied to comment on the news and a spokesperson for Tom Tailor declined to comment.
Note: The story has been updated with additional details from the statement of the European Commission.
Picture: Tom Tailor