Wal-Mart’s biggest supplier considering acquisitions in China
HONG KONG - Li & Fung Ltd., the biggest supplier to Wal-Mart Stores said Friday that it may increase acquisitions in China as the country’s consumer spending grows, U.S. demand rebounds and inflation propels companies to seek partners.
Li & Fung president Bruce Rockowitz told Bloomberg that it may buy Chinese companies in the fashion, cosmetics and furniture industries in the next three years. He also said it will increase purchases in the United States, Europe and Japan.
According to the Bloomberg report, Rockowitz said retailers are set to sell out at Christmas with inventories tight and factories in China booked up.
“We see opportunities in every jurisdiction right now,” Rockowitz told Bloomberg, adding that the company will announce its three-year strategy in March. “We have a huge plan for it.”