By Joshua Kirby 
 

Exor NV has bought a majority stake in Chinese luxury-goods company Shang Xia from Hermes International SCA, it said Wednesday.

The holding company, which counts auto makers Fiat Chrysler Automobiles NV and Ferrari NV among its companies, said it will invest around 80 million euros ($96.7 million) in Shang Xia, resulting in a non-recurring profit of EUR80 million for Hermes. The French luxury company will remain a shareholder alongside Shang Xia founder Jiang Qiong Er, Exor said.

Shang Xia was founded in 2010 with the backing of Hermes. It has stores in several Chinese cities and in Paris, and is set to inaugurate stores in Taiwan and Singapore next year.

The transaction is expected to be completed by the end of the year, Exor said.

 

Write to Joshua Kirby at joshua.kirby@dowjones.com; @joshualeokirby

 

(END) Dow Jones Newswires

December 10, 2020 04:26 ET (09:26 GMT)

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