Hong Kong-based manufacturing and logistics giant Li & Fung Ltd. said Thursday that it has formed a new sourcing agreement with Wal-Mart Stores Inc. for Sam’s Club and Wal-Mart stores.
Li & Fung also said that an agreement allowing Wal-Mart the option to purchase all of the shares of Li & Fung subsidiary Direct Sourcing Group Pte. Ltd. was terminated.
Li & Fung said the new five-year agreement, which is renewable for another two years, supersedes an arrangement the parties made in January 2010. The Hong Kong company said it will continue to be the “primary direct resource” for Sam’s Club in the United States and will provide certain buying services to Wal-Mart stores in the U.S. and some international markets. Li & Fung said one of its subsidiaries will also act as a principal supplier to Wal-Mart International.