THE WHAT? Beijing Liyuan is planning to sell its 35% stake in Shiseido Liyuan Cosmetics, bringing to an end its more than 30-year joint venture with Shiseido.
THE DETAILS According to a listing on the China Beijing Equity Exchange, Beijing Liyuan is seeking at least RMB199.5 million (US$29.3 million) for its shareholding in the venture. Shiseido China Investment and Shiseido currently own the remaining 65% stake. Shiseido China Investment confirmed the proposed transaction but has not indicated whether it intends to acquire Beijing Liyuan’s interest. Established in 1991, Shiseido Liyuan Cosmetics was created to develop products specifically for Chinese consumers, including the Aupres brand, which became a key part of Shiseido’s long-term strategy in the Chinese market. The transaction remains subject to completion.
THE WHY? The proposed sale marks a significant change to one of Shiseido’s longest-standing partnerships in China and reflects the continued evolution of the company’s operating structure in one of its most important international markets.
Source: InsideRetail
