China’s Fosun buys stake in French leisure company Club Méditerranée

Shanghai-based Fosun International, the largest private-owned conglomerate in China, yesterday bought a 7.1-per cent stake in French leisure group Club Méditerranée, the first time Chinese investment in the hospitality industry in France.

Fosun, which is listed on the Hong Kong Stock Exchange, run by chairman Guo Guangchang , has investments in pharmaceuticals, property development, steel, mining, retail, services and strategic investments, with annual revenue of more than 35 billion RMB.

The two groups said that the strategic partnership agreement was in order to build comprehensive cooperation in upscale resort construction and operation as well as developing global business synergies.

Although the two companies did not reveal financial details of the transaction, Fosun's acquired the 71-per cent stake for about $28.14 million based on Club Méditerranée' closing share price on Friday.

With the restructuring of the global economy, China's economic growth model is attracting attention. An internal-led growth model will bring various business opportunities to the world.

Chinese tourism is rapidly growing and offers great opportunities and the number of China's domestic travellers reached 1.9 billion in 2009, and is expected to keep growing in the future at a double-digit rate.