Possible partnership arrangement
Discussions are underway between luxury products group LVMH and public sector Chinese cosmetics enterprise Shanghai Jahwa over a possible partnership arrangement. A report in China Securities Journal quotes Ge Wenyao, president of the Chinese company as saying that the two companies hoped to "develop their relations in certain areas".
Shanghai Jahwa is already a local partner of LVMH following the introduction of the Sephora cosmetics brand into the Chinese market in 2004. Ge also suggested that it might be possible for LVMH to acquire a small stake in the Chinese group. Shanghai Jahwa is currently engaged in offering participation in the company as part of a restructuring. Such a stake would cost about €527m or about 5 billion yuan.