UAE's Lulu Group makes $82 mln investment in U.K.'s East India Co
United Arab Emirates-based supermarket chain Lulu Group has bought a 10 per
cent stake in U.K.-based trading firm The East India Company and a 40 per
cent stake in its fine foods subsidiary for around $82 million in total.
The new investment will enable the fine foods unit to expand its store
network in Europe, the Far East and prepare for a launch in the United
States, Yusuff Ali, managing director of Lulu Group, said in a statement
late on Wednesday.
The statement didn't disclose the size of the stakes nor the price. However,
a spokesman of Lulu told Reuters the Abu Dhabi-headquartered firm is
investing approximately $82 million in two phases for the stakes it is
buying.
The East India Company Fine Foods sells luxury foods including tea and
chocolate and has four stores in the U.K and three in the Middle East. It
also distributes through retailers in 16 countries.
Lulu Group, best known for its chain of supermarkets and hypermarkets, has
operations in 31 countries and reported turnover in excess of $5 billion
last year.
It joins Mahindra Group as an investor in The East India Company. The Indian
conglomerate first bought into the firm in 2010 and made a further
investment in 2013.
In May, Lulu announced expansion in Malaysia with plans to open six new
halal-only hypermarkets with an investment of $200 million.