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MUMBAI: Hamleys, the world's oldest toy retailer, is expected to move from Chinese control to Indian control after Reliance Industries announced its agreement to buy the British street icon.
Through its subsidiary Reliance Brands, the conglomerate announced that it has signed an agreement to buy the 250-year-old chain from C Banner International Holdings, a Hong Kong-listed company.
On Friday, C Banner's shares were suspended pending an announcement.
Reliance did not disclose the price of the transaction, but in 2018, C Banner wrote off $ 49.8 million of acquisition gap and brand value related to Hamleys, as shown its annual report. The reduction reduced the book value of the toy retailer by 36 percent to 626 million yuan (91.85 million US dollars).
The Chinese group bought Hamleys in 2015 for $ 130.2 million from the French group Ludendo, but its enthusiasm for British acquisitions has since cooled down. Last year, he abandoned his plan to purchase 51% of House of Fraser, which resulted in the administration of the British department store chain.
The acquisition by Reliance Industries, owned by the richest Indian man Mukesh Ambani, marks the conglomerate's first foray into a retail brand abroad.
Reliance Industries, which operates the largest crude oil refinery in the world, is the largest in the world and has become a true consumer behemoth through retail and telecom projects.
"The global acquisition of the iconic Hamleys brand and its business puts Reliance at the forefront of global retail," said Reliance Brands Managing Director Darshan Mehta.
Founded in 1760, Hamleys is important for adults and children alike. Its flagship store, Regent Street, located in central London, is recognized around the world.
The toy seller operates 167 stores in 18 countries, the majority of which in India, said Reliance. The Indian company, which already holds the main franchise for the brand in India, currently operates 88 stores in 29 cities.
After establishing itself as India's leading mobile telecommunications player, Reliance Industries has announced its intention to combine its traditional outlets with an online foray to attack Amazon.com Inc. and at Walmart Inc. in India.
As a supermarket operator, Reliance is already the largest brick and mortar retailer in the country in terms of turnover and number of stores.
The conglomerate's strategy to diversify beyond refining and petrochemicals saw its fast-growing telecommunications and retail business drive its quarterly profits to record highs while its gross refining margins were hard hit by volatility in oil prices and slowing global demand.
The group's retail sales doubled to Rs 356 billion ($ 5.1 billion) on December 31, while earnings before interest and taxes more than tripled to Rs 15 billion.
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