A.S. Watson, the retail and manufacturing division of Hutchison Whampoa Limited, announced Tuesday a recommended cash offer of 221.9 million pounds (406,19 million US dollars) for the entire issued and to be issued ordinary share capital of Merchant Retail Group plc, a British listed specialist perfume retailer.

Merchant Retail's principal business, The Perfume Shop, has developed a highly successful format in the British fragrances sector. The business has grown consistently over the past five years, from 55 stores to 114 stores in the Britain and Ireland, generating turnover that has increased from 37.8 million pounds ( 69.17 million US dollars) to 105.8 million pounds (193.61 million US dollars) over the period. The preliminary results for the 52- week period ended March 26, 2005, announced Tuesday, show another strong performance.

A.S. Watson is one of the largest health and beauty retailers in the world by number of stores. Since 2000, Europe has been a major focus of expansion for A.S. Watson, where it has actively built a strong European presence in the health and beauty market through a series of acquisition.

The Directors of Merchant Retail considered the terms of the offer to be fair and reasonable and accordingly have unanimously recommended that Merchant Retail Shareholders accept the offer, according to Brian O'Callaghan, chairman of Merchant Retail Group plc.

Source: Xinhua