Fosun may obtain full control of German fashion retailer Tom Tailor

China’s Fosun International Ltd may obtain full control of German fashion retailer Tom Tailor, in which the company currently holds a stake of about 29 percent.

Fosun informed the European Commission on December 21 that it may passively obtain “de facto control” of the Hamburg-based retailer after attendance rates at past shareholder meetings decreased. Now, the EU Commission has approved the “acquisition of sole control”, according to a statement on its website on Tuesday. Fosun has already effectively held the majority at the annual meetings in 2017 and 2018, Tom Tailor said in a statement on Wednesday. In the same statement, the company also added that it is currently conducting capital measures but declined to comment on the details.

Fosun currently holds 28.89 percent in Tom Tailor Holding SE, according to the retailer’s website. The remaining shares are in free float.

EU Commission gives green light on acquisition

Fosun has invested in several struggling fashion companies in the past. The company acquired the majority in Austrian hosiery manufacturer Wolford and French fashion house Lanvin in the past year. Its fashion and textile investments also include Caruso, St. John and Kutesmart, and it has also invested in companies from the tourism and financial industry.

Shares of Tom Tailor have fallen to a record low in January after a tumultuous year for the German fashion sector. The shares last traded at 2.42 euros on Tuesday - almost 80 percent down from a year ago.

Founded in 1962, Tom Tailor operates more than 1,200 stores in 33 countries, and last reported a net loss of 0.3 million euros in the third quarter of 2018.

Fosun has not yet replied to comment on the news.

Note: The story has been updated with additional details from the statement of the European Commission and the statement by Tom Tailor.

Picture: Tom Tailor