Shandong Ruyi Group the Chinese mainland textile producer which bought control of French fashion group SMCP earlier this year is now planning to acquire iconic British trench coat maker, Aquascutum brand business from Hong Kong-listed YGM Trading Ltd for about $120 million. Ruyi hopes to reach a final agreement in the next few weeks, the sources said.

Ruyi joins Fosun International Ltd and Qingdao Haier Co in seeking to acquire foreign consumer brands that can be marketed to increasingly affluent Chinese shoppers. Chinese companies have announced $50.2 billion in overseas consumer acquisitions this year, up from $24.3 billion during the same period in 2015.

Aquascutum was founded in 1851 in London by tailor John Emary, who invented a rain-repellent fabric. From the beginning, fine craftsmanship and technical innovation have been at the forefront of the brand.

The company's trench coats, developed for use by the British military, were later worn by UK former Prime Minister Margaret Thatcher and US movie star Humphrey Bogart, according to Aquascutum's website. YGM Trading became the global owner of the brand in 2012.

The Chinese textile producer has also invested in clothing companies including Tokyo-based Renown Inc.