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Li & Fung seals takeover of KarstadtQuelle buying unit

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SCMP Reporter

Consumer goods exporter Li & Fung has sealed its acquisition of KarstadtQuelle International Services, a global sourcing arm of KarstadtQuelle, Europe's largest department store and mail order group.

It is the third takeover since June for the expansion-minded Hong Kong company.

KarstadtQuelle, in a statement on its website, said that Li & Fung would take over its entire international sourcing business with 1,000 employees.

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It did not disclose the purchase price. In June, when Li & Fung signed a letter of intent to buy KarstadtQuelle International Services, analysts estimated that the takeover would cost about Euro100 million (HK$987.47 million).

The German retailer said it has also signed a contract with Li & Fung on future co-operation.

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The transaction is subject to approval of the European competition authorities.

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