Burberry puts more emphasis on the Chinese market as it buys up the remaining stake in its retail operation there
Asia has proved a mixed bag for UK businesses in recent months, with some banks doing everything they can to manoeuvre out of the continent as volatility continued to rock markets.
But now Burberry has taken the bold decision to move further into the Chinese market, buying the remaining 15 per cent stake in its Chinese distributor for £54m.
The acquisition gives it full control of the operation previously owned by the rather incongruously-named Sparkle Roll Holdings, which it first bought a stake from back in 2010.
Burberry is one of the many UK businesses to win from the weaker pound: despite weak results posted last month, analysts were keen to point out that it "could well see its profits get a bounce" on the back of falling sterling.
However, at the time they also suggested the company has too many eggs into its Chinese basket, with analysts at Liberum saying it was "overly reliant" on the market. So we're not sure what they'll make of today's announcement.
Still, the company's shares have spiked since it shunted aside chief executive Christopher Bailey – who was (and continues to be) in the unusual position of also being creative director – to make way for fashion veteran Marco Gobbetti. Bailey, meanwhile, became president.
Today investors seemed impassive, though: shares edged up 0.3 per cent to 1,324p in early trading.
