The Acquisition of Club Med by Fosun Group
Supervising Professor: Mei Jianping; Case Researcher: Cui Huanping [ Language available : Chinese / English ]

On June 11, 2010, Fosun Group acquired a 7.1% stake in France’s Club Med, a travel and leisure brand. Fosun integrated its organizational and HR structure, accelerating site openings and improving promotions so as to capitalize on the budding Chinese market for travel offerings.
This case examines key aspects of Fosun’s acquisition of Club Med, and how “China Power” can be effectively linked to “global resources.” Did Fosun Group, which had just begun to look for opportunities overseas, choose the right investment target? As an investment group, Fosun follows Buffett’s value investment principles. In light of this, what is the value of Club Med to Fosun? How did Fosun get over its deadlock in the negotiation? Is there a chance of mutual value creation for the pair?

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