Chinese conglomerate Fosun International Ltd. plans to make acquisitions in North America in a bid to expand its tourism footprint in the region as it launches a new resorts line in China, Bloomberg News reported May 19.
Fosun-owned Club Med recently launched its new Joyview line of resorts in China aimed at millennials and families who need a short holiday not too far from major cities, the report said.
The company's senior vice president and Fosun Tourism and Culture Group chairman Qian Jiannong said his company is "interested in anything related to the tourism sector." Jiannong said that a strong presence in North America would boost Club Med and Fosun's tourism portfolio. Most of the company's profits currently come from Europe and Asia, according to the report.
Jiannong declined to name any specific acquisition targets.
Jiannong also allayed concerns over the possible impacts on travel business amid trade tensions between China and the U.S.
The report also mentioned Fosun's intent to protect its interest as a minority shareholder in FF Group, which owns the Folli Follie brand. Fosun is FF's second largest shareholder with 16.37% of shares. Jiannong is also a non-executive director of FF Group.
FF is under fire after New York-based hedge fund Quintessential Capital Management accused Folli Follie of possibly having only half of the stores it claims. FF disputed the allegations made by the hedge fund. FF said it hired Ernst & Young to re-audit its 2017 results.
