LVMH Makes $13 Billion Bid for Dior

Semyrhamis, a company owned by the Arnault Family Group, has made its $13 billion offer to acquire Christian Dior.

According to an article on The Fashion Law, Semyrhamis, a company owned by the Arnault Family Group, has made its $13 billion offer to acquire the Christian Dior brand. This comes about a month after LVMH Moët Hennessy Louis Vuitton announced it would acquire Christian Dior Couture and offer to buy Christian Dior SE.

Semyrhamis filed its offer with L’Autorité des marchés financiers to acquire all shares of Christian Dior SE that it does not already own. Semyrhamis is owned by the Arnault Family Group, which owns a 47% stake in LVMH.

About a month ago, LVMH announced it would be purchasing Christian Dior for $13 billion. The company said it would be purchasing Christian Dior Couture from Christian Dior SE, the brand’s parent company, for $7.1 billion. The company also said it would offer to buy the 25.9% of Christian Dior SE it doesn’t already own.

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The offer, which was reported to be made by the Arnault Family Group, includes €172 (about $182) cash and 0.192 Hermès shares per each outstanding Dior share. It was also said the deal would be completed by secondary offers in both cash and Hermès shares.

A spokesperson for Semyrhamis released a statement saying,

based on the independent expert’s conclusions which confirm that the offer is fair and further to the release of the favourable opinion of the ad hoc committee composed of independent directors, the Board of directors of Christian Dior, held on May 22nd, 2017, has unanimously recommended that Christian Dior shareholders tender their shares to the offer. In addition, Christian Dior Couture’s works council (Comité d’entreprise) has released a favorable opinion on the proposed disposal of Christian Dior Couture to LVMH.

The Spokesperson continued to say,

therefore and after having reviewed the respective independent experts’ conclusions which confirm the fairness of the transaction’s price and further to the release of the respective ad hoc committees’ favorable opinion, the Board of directors of LVMH and Christian Dior have unanimously approved the execution of the definitive acquisition agreement through which Christian Dior Couture will be acquired by LVMH at an enterprise value of 6.5 billion euro.

LVMH will now own the entire Christian Dior brand. That, of course, includes haute couture, leather, men’s and women’s ready to wear, and shoes. LVMH already owns Parfums Christian Dior and the brand’s beauty business. The company has about a 74% stake in Christian Dior SE.

Christian Dior also owns 41% of LVMH and has 56.8% of voting rights, making it the company’s biggest shareholder. Purchasing the entire Christian Dior brand would simplify the company’s ownership of the brand. It would probably also increase sales and profits at the company.

So, what do you think? Will Dior make sales and profits increase at LVMH? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.


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