HONG KONG Global supply chain manager Li & Fung Ltd (0494.HK) on Thursday outlined a new sourcing arrangement between its unit, Direct Sourcing Group Pte Ltd, and Wal-Mart Stores Inc (WMT.N) that supersedes the previous buying deals made in January 2010.
Under the new arrangement, Wal-Mart's option to purchase all of the shares of Direct Sourcing was terminated and Direct Sourcing will continue as the primary direct resource for the U.S. company's unit Sam's Club, Li & Fung said in a filing to the Hong Kong bourse.
"The move to a supplier relationship will allow the group to provide Walmart International markets with design, replenishment and other services that could not be provided as a buying agent," it added.
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(Reporting by Donny Kwok; Editing by Anne Marie Roantree)