Toy story: Asia's richest man Mukesh Ambani buys Britain's Hamleys for $88m

Published May 10, 2019
Asia's richest man Mukesh Ambani has snapped up the storied British toy store Hamleys from its Chinese owners for $88 million, the latest in a dizzying splurge of retail acquisitions. — Reuters/File
Asia's richest man Mukesh Ambani has snapped up the storied British toy store Hamleys from its Chinese owners for $88 million, the latest in a dizzying splurge of retail acquisitions. — Reuters/File

Asia's richest man Mukesh Ambani has snapped up the storied British toy store Hamleys from its Chinese owners for $88 million, the latest in a dizzying splurge of retail acquisitions.

Ambani's Reliance Brands announced late on Thursday that it had bought the 259-year-old toy retailer from the Hong Kong-listed Chinese fashion conglomerate C.Banner International Holdings.

"The worldwide acquisition of the iconic Hamleys brand and business places Reliance into the frontline of global retail," Darshan Mehta, president and CEO of Reliance, said in a statement.

Ambani, worth some $50 billion according to Forbes, initially made his fortune in oil refining and petro-chemicals but his Reliance empire has since branched into everything from telecoms to cable networks and tech firms.

In recent years he has massively expanded his retail portfolio, snapping up a string of well-known brands such as Burberry, Canali, Paul Smith, Armani, Just Cavalli and Jimmy Choo.

Ambani has said he hopes the consumer business wing of his empire will contribute as much to his conglomerate's earnings as the core energy business by the end of 2028.

He is currently engaged in fierce competition with Amazon and Walmart in an ongoing race to dominate India's retail market.

The purchase of the much-loved Hamleys will help bolster that fight.

Best known for its enormous flagship store in London — itself a tourist attraction that receives five million visitors a year — Hamley's has been expanding internationally since the mid-2000s.

Reliance already had a franchise agreement for India, running 88 stores in 29 cities but the purchase now brings him a total of 167 stores in 18 countries.

But while the brand is well-known, Hamleys has struggled.

The $88 million price tag is almost half what C.Banner paid previous owner, France's Groupe Ludendo, in 2015.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Missing links
Updated 27 Apr, 2024

Missing links

As the past decades have shown, the country has not been made more secure by ‘disappearing’ people suspected of wrongdoing.
Freedom to report?
27 Apr, 2024

Freedom to report?

AN accountability court has barred former prime minister Imran Khan and his wife from criticising the establishment...
After Bismah
27 Apr, 2024

After Bismah

BISMAH Maroof’s contribution to Pakistan cricket extends beyond the field. The 32-year old, Pakistan’s...
Business concerns
Updated 26 Apr, 2024

Business concerns

There is no doubt that these issues are impeding a positive business clime, which is required to boost private investment and economic growth.
Musical chairs
26 Apr, 2024

Musical chairs

THE petitioners are quite helpless. Yet again, they are being expected to wait while the bench supposed to hear...
Global arms race
26 Apr, 2024

Global arms race

THE figure is staggering. According to the annual report of Sweden-based think tank Stockholm International Peace...