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By
Reuters
Published
Jun 9, 2011
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Shanghai Jahwa, LVMH in talks on new partnership

By
Reuters
Published
Jun 9, 2011

June 9 - China's state-owned cosmetics maker Shanghai Jahwa Group is in talks with the world's biggest luxury group LVMH on new business partnerships, the China Securities Journal reported on Thursday, citing a senior Shanghai Jahwa executive.

LVMH
Cocool brand (Shanghai Jahwa Group)

The two parties hope to deepen their business ties in certain areas, Shanghai Jahwa Chairman Ge Wenyao was quoted by the newspaper as saying.

Shanghai Jahwa was the local partner of LVMH when the global luxury group brought its Sephora shops into China in 2004.

Ge did not rule out the possibility of LVMH buying a small stake in the Chinese cosmetics company.

"Everything is possible," he was reported as saying.

Shanghai Jahwa is undergoing a restructuring which involves the sale of assets worth about 5 billion yuan ($772 million), the report said.

Shanghai Jahwa owns about a third of its namesake subsidiary on the Shanghai Stock Exchange, the China Securities Journal reported.

(Reporting by Soo Ai Peng; Editing by Jonathan Hopfner)

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