Li & Fung may sell LF Asia to concentrate on supply chain management

Li & Fung is likely to sell its cosmetics and pharmaceutical wholesale unit LF Asia in China and South East Asia, in order its focus more on supply chain management.

According to documents submitted to Hong Kong Exchanges and Clearing, Li & Fung has begun discussions with a potential buyer for the business unit, which is believed to worth around $400m.

However, it is not clear whether the firm will reach an agreement with the buyer, reported Nikkei.

LF Asia has more than 40 branches and logistics centres in greater China and South East Asia, as well as provides logistics to more than 30,000 retail stores and healthcare institutions. The unit mainly focused on the US and EU brands, department stores, hypermarkets, speciality stores, catalogue-led companies and ecommerce sites.

It is also involved in the distribution of various consumer goods, including Coty cosmetics and Procter & Gamble’s personal care products, reported Bloomberg.

With the sale, Li & Fung aims to concentrate on supply chain management to provide apparel and other items to retailers in the US and Europe, reported Nikkei.