Exporter Li & Fung makes move for China market

Hong Kong trading company Li & Fung Ltd. says it is trying to expand its business in China by offering to buy a distribution company for about 6.8 billion Hong Kong dollars, or $876 million.

Retail goods and textile exporter Li & Fung is a major supplier to Wal-Mart Stores Inc. and other large retailers.

A statement from Li & Fung to Hong Kong's stock exchange on Friday says it has offered HK$21, or $2.70, for each share of Integrated Distribution Services Group Ltd.

The statement says Li & Fung's distribution and wholesaling business in China and the rest of Asia brought in 2 percent of the company's revenue last year.

The company says if the deal goes through, it would take effect by the end of 2010.

businessweek