LVMH TO GAIN CONTROL OF DIOR
A $13-BILLION DEAL
Steered by French billionaire Bernard Arnault and his family group, the LVMH Moët Hennessy Louis Vuitton luxury empire wants to take control over Christian Dior with a $13.1 billion deal to buy out minority shareholders for the 25.7 percent stake it does not already own. The transaction would streamline and consolidate LVMH’s relationship with the Parisian fashion house. With the deal, LVMH, which already owns Parfums Christian Dior, would gain full ownership of the Christian Dior haute couture, leather, men’s and women’s ready-to-wear, and footwear division.
According to a quote published in The New York Times, Bernard Arnault stated that “The corresponding transactions will allow the simplification of the structures, long requested by the market, and the strengthening of LVMH’s fashion and leather goods division.”
The LVMH roster of luxury brands already includes Louis Vuitton, Fendi, Celine, Berluti, Givenchy and Loro Piana, among others. According to the press, Arnault’s decision to acquire full ownership of Dior was well received by analysts and investors. To finance the operation, Arnault will use the group’s remaining stake in rival Hermès International as partial payment.