CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Benetton sells World Duty Free stake to Dufry

Article By: ,  Financial Analyst
March 30, 2015 11:26 AM

World Duty Free is set to fall into the hands of Switzerland's Dufry following an agreement that will create the world's largest travel retailer.

The Benetton family announced that it would be selling its controlling stake in World Duty Free to Dufry in a deal worth around €3.6 billion (£2.63 billion). The Swiss firm is paying around €10.25 a share for the 50.1 per cent stake which will see it take over a company with a market share of 25 per cent and projected annual sales of €8.3 billion.

Once completed, the deal will combine World Duty Free which operates 495 stores in 98 airports across the globe with the Basel-based Dufry with 1,650 locations in over 60 countries. The Swiss firm boasts a workforce of 20,000 employees and last year posted a record turnover of $4.3 billion (£2.9 billion).

Outlining the financial details of the deal, Dufry said in a statement: "Dufry will finance the acquisition through a mix of debt and equity, raised through a rights issue which is underwritten by a group of banks and well-known cornerstone investors."

Dufry operations

Dufry has a presence across the globe with perfumes and cosmetics being its top-selling category in the past year. Consumers purchasing these type of goods accounted for 28 per cent of all new sales in the year ending December 31st, 2014. This far outweighed the 18 per cent reached for confectionery, food and catering and 15 per cent on wine and spirits.

The company believes that by teaming up with World Duty Free it will be able expand its services to passengers visiting some of the world's busiest airports.

World Duty Free last year posted a turnover of $2.6 billion and is currently owned by Edizione, the holding company of the Benetton family.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024