Fosun seals two major European deals

Fosun International based in Shanghai, China's largest domestic private investment company, aims to tap the fashion and lifestyle-related industries thanks to two major deals in Europe.

The group officially announced on Friday the successful completion of its purchase of French holiday resort chain Club Mediterranee SA, and the establishment of a strategic partnership with leading British travel company Thomas Cook.

"With the continuous growth of consumer demand in the Chinese market, Fosun will be paying increasing attention to investment in fashion and lifestyle-related industries such as tourism," said Guo Guangchang, chairman of Fosun Group.

"The Chinese market has great potential, which is also clearly an advantage for us as we look to develop business outside the country. We are particularly interested in opportunities in Europe and the United States, where companies both enjoy good brands and technologies," said Guo.

He said that Thomas Cook has good brand recognition, and is regarded as having the leading position in the European tourism market, and Club Med will become an investment platform for Fosun's integration of the fashion and lifestyle industry.

"The strong alliance between the two sides will allow us to further develop international leisure tourism, demand for which grows with each passing day," said Guo.

Peter Fankhauser, CEO of Thomas Cook, said that "we are delighted to announce our partnership with Fosun, which represents a major milestone in Thomas Cook's 174-year history. Our cooperative partnership with Fosun will allow us to seek out opportunities in China, one of the world's largest and fastest growing tourism markets."

Fosun International is a major private investor on the acquisition trail in Europe and the US.

Last year Fosun spent more than $8 billion in investments, ranging from the tourism and movie industries to the Internet, some of which were overseas.

In January, Fosun purchased Club Med at 24.60 euros per share, valuing the brand at 939 million euros. On March 6, Fosun also announced its investment in Thomas Cook, through its subsidiary Fidelidade-Companhia de Seguros, SA, the largest insurance company in Portugal.