07 Jan Italy’s Ferretti Yachts Bought By Shandong Heavy
HONG KONG—Chinese state-owned Shandong Heavy Industry Group Co. is in advanced talks to buy Italian luxury-yacht builder Ferretti Yachts, a person familiar with the situation said.
It is the latest move by a Chinese company to acquire makers of luxury products that are increasingly popular on the mainland.
The Shandong-based company plans to sign the deal next week at the earliest, the person added, declining to give a value for the potential pact.
Shandong Heavy—a company that has businesses ranging from auto parts to vehicles and including yacht manufacturing—wants Ferretti so it can gain overseas technology know-how as well as an international brand name, the person said.
China is becoming the world’s largest market for luxury goods and, increasingly, mainland investors believe buying higher-end products will move them up the value chain and result in fatter profit margins. Many also believe they can tailor products to local tastes.
China’s Fosun International Ltd.—which has interests ranging from steel and property to pharmaceuticals and jewelry—said in May 2011 it planned to buy a 9.5% stake in Folli Follie, a Greek jewelry retailer with outlets in Europe and Asia, for €85 million (about $108.7 million).
Read the rest of this news story here on the WSJ.