Retail giant Dairy Farm International Holdings has announced that it has reached an agreement to acquire the IKEA home furnishing businesses in Hong Kong and Taiwan.

Dairy Farm will acquire the businesses from Jardine Pacific Holdings for US$27m, funded using Dairy Farm's existing cash resources.

Sweden's IKEA is the world's largest home furnishing retail chain, and has four stores in Hong Kong and one in Taipei, which together employ around 600 staff.

Jardine Pacific has held the licence to operate the stores in Hong Kong since 1988 and in Taiwan since 1994. Dairy Farm will acquire all five stores, and will keep all current staff, reported Asia Pulse.