TOP NEWS
* The European Union's competition regulator will launch a tax-avoidance probe into Swedish furniture retailer IKEA Group, as the company's Dutch tax arrangements allegedly helped it avoid nearly €1 billion in EU taxes from 2009 through 2014, the Financial Times reported. IKEA and the European Commission declined to comment, the newspaper added.
* Procter & Gamble Co. said Dec. 15 that its board agreed to add Nelson Peltz as a director, the culmination of a proxy fight between the Cincinnati-based company and the activist investor's hedge fund, Trian Fund Management LP. The consumer products giant cited the closeness of a director election between Peltz and former Mexican President Ernesto Zedillo. The company said the results prompted it to engage in numerous discussions with Peltz and ultimately offer him a board seat, effective March 1.
APPAREL AND LUXURY GOODS
* Luxury fashion group Michael Kors Holdings Ltd. will no longer use animal fur in its merchandise. It will be phased out of the company's production cycle by the end of December 2018. The decision will include the product range at Jimmy Choo, which Michael Kors acquired in November.
* Swedish apparel retailer H&M Hennes & Mauritz AB plans to open an online flagship store on Alibaba Group Holding Ltd.'s Tmall marketplace in early 2018, according to a post on the Chinese e-commerce giant's company news site, Alizila. The retailer said the new store would feature its H&M-brand fashion and home collections.
* Luxottica Group SpA CEO for product and operations Massimo Vian stepped down ahead of the Italian eyewear maker's merger with French ophthalmic lens maker Essilor International Société Anonyme. Luxottica will transfer Vian's responsibilities to Executive Chairman Leonardo Del Vecchio and Deputy Chairman Francesco Milleri, who is assuming the role of CEO.
* Hong Kong-based contemporary luxury brand Shanghai Tang aims to go global with store openings in Paris, Milan and mainland China over the next two years, the South China Morning Post reported, citing the company's co-owner, Alessandro Bastagli. Bastagli reportedly also expects to increase Shanghai Tang's e-commerce sales to 20% to 30% of total sales, from the current 10%.
E-COMMERCE
* Chineses e-commerce giant JD.com Inc. and Tencent Holdings Ltd. will invest about $863 million in Chinese online discount retailer Vipshop Holdings Ltd. through a share subscription, with the trio also forming a strategic alliance to expand their e-commerce presence. Under the agreement, JD will spend $259 million to subscribe for newly issued class A ordinary shares of Vipshop to give it a 5.5% stake in the company, while Tencent will invest $604 million for a 7% stake.
* Amazon.com Inc. plans to enter the e-commerce market in Vietnam following the growing online retail presence of Alibaba Group Holding Ltd. in Southeast Asia, HanoiTimes reported, citing the chairman of the Vietnam E-commerce Association. Amazon aims to export and import goods from the country and also wants to support local small and medium-sized enterprises to export their products via its online marketplace, the report added.
* Chinese e-commerce giant Alibaba Group Holding Ltd. invested in Chinese electric car startup XPENG Motors as the Chinese e-commerce giant continues its foray into the automotive industry. XPENG Motors said Dec. 15 that it completed three rounds of series A+ financing and it would disclose its series B round funding round in early 2018. The amount of Alibaba's investment was not disclosed.
* Italian tax authorities said Amazon.com Inc. will pay €100 million to settle a tax dispute in the country, Reuters reported Dec. 15. The report added that the sum covers taxes that Italy's inland revenue service said Amazon owed between 2011 and 2015. Amazon did not immediately respond to a request for comment.
HOUSEHOLD AND PERSONAL PRODUCTS
* Unilever Plc will sell its spreads business to private equity firm KKR & Co. LP in a €6.83 billion deal it announced Dec. 15. KKR's binding offer for the division, which had a turnover of about €3.03 billion in 2016, is subject to regulatory approval. The parties expect the transaction to close in mid-2018, adding that the acquisition is on a cash-free, debt-free basis.
* Retail-focused private equity firm Fireman Capital Partners teamed up with Texas-based beverage platform Dunn's River Brands to buy the Sweet Leaf Tea and Tradewinds ready-to-drink tea brands from Nestlé Waters North America Inc., a unit of Swiss food group Nestlé SA. Dunn's River said the acquisitions will act as the base for future deals of smaller high-growth brands. Terms of the deal, which is expected to close by 2017-end, were not disclosed.
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