Shiseido to Wholly Acquire Subsidiary

Shiseido Co., Ltd. announced it has entered into a letter of intent with Dah Chong Hong Limited (DCH), a wholly owned company of Dah Chong Hong Holdings Limited (headquarters: Hong Kong), on May 6, 2010, pursuant to which Shiseido will acquire all shares of Shiseido Dah Chong Hong Cosmetics Limited (SDC) from DCH. SDC is the joint company launched by DCH and Shiseido, and is Shiseido’s consolidated subsidiary.

In order to become a “global player representing Asia with its origins in Japan,” Shiseido has focused its management strategy around enhancing its growth potentials in markets around the world. Under its three-year plan implemented in fiscal 2008 in which Shiseido aims to improve the quality of its activities across the board, Shiseido has been working on a structural reform.

Although currently Shiseido has 50% shares of SDC and provides Shiseido brand and non-Shiseido brands cosmetics in Hong Kong, Macau and mainland China (Guangdong Province) through SDC, Shiseido has decided to make SDC its wholly owned subsidiary in order to achieve further enhancement of business in China. As a means of more proactively responding to significant growth of the cosmetics market and greater demand in line with China’s rapid economic development in recent years, Shiseido will undertake measures to further enhance customer satisfaction and expand sales.

More in News