Frasers Group Expands Its Strategic Investments Despite Rejected Mulberry Acquisition

The Frasers Group, the retail empire of sportswear mogul Mike Ashley, is undeterred by the recently rejected £83 million takeover bid for luxury handbag manufacturer Mulberry. Instead, the company continues its course of acquiring stakes in strategically important companies. On Friday, the Frasers Group invested £10 million in the British e-commerce company THG, which operates platforms such as Lookfantastic and Myprotein. This latest investment once again illustrates that Ashley and his team have a knack for acquiring stakes in areas they consider strategically relevant—much to the confusion of many analysts, as noted by investment house Jefferies. The reasons behind these investments are not always clear and lead to sometimes heated discussions among investors. Legal disputes have also arisen: In May, Frasers withdrew a lawsuit against Morgan Stanley concerning the bank's coverage of derivative positions with Hugo Boss. Since its IPO in 2007, the Frasers Group has acquired stakes in numerous companies, including Adidas and JD Sports, to strengthen trading relationships or secure market positions in case of a sale. Analysts point out that while Frasers is interested in certain investments, it does not intend to acquire all of them. The ongoing takeover battle for Mulberry has gained relevance due to the changed situation with Mulberry's main owners, the Singaporean Ong family. A corruption case against the family patriarch adds to the tension. Later on Friday, Frasers raised its takeover bid for Mulberry to £111 million and is now awaiting a response from the board. With investments totaling over £500 million, the Frasers Group continues to focus on strategic partnerships and innovative approaches like the Frasers Plus program to consolidate its market position. In addition to Mulberry, Frasers has also expressed interest in fashion houses such as Asos and Boohoo, which are under pressure from growing competition.