LVMH Moët Hennessy Louis Vuitton has announced that is will be purchasing Christian Dior for $13 billion.
According to an article on Reuters, LVMH, parent company of Louis Vuitton, Céline, Givenchy, and more, has announced that it will be purchasing Christian Dior. The French luxury brand will reportedly be purchased for about $13 billion.
LVMH will buy Christian Dior Couture from Christian Dior SE, the brand’s parent company, for $7.1 billion. The company will also offer to buy the 25.9% of Christian Dior SE it doesn’t already own. If it is purchased, the company will now own the entire Christian Dior brand. That includes, of course, haute couture, leather, men’s and women’s ready to wear, and shoes.
The offer, which will be made by the Arnault Familiy Group, will include €172 (about $187) cash and 0.192 Hermès shares per each outstanding Dior share. The deal would also be completed by secondary offers in both cash and Hermès shares.
LVMH already owns Parfums Christian Dior and the brand’s beauty business. The company has about a 74% stake in Christian Dior SE.
CEO Bernard Arnault released a statement saying,
“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 thanks to the acquisition of Christian Dior Couture, one of the most iconic brands worldwide. They illustrate the commitment of my family group and emphasizes its confidence in the long-term perspectives of LVMH and its brands. I am delighted to announce this project today and thus continue and reinforce the development of LVMH in France and worldwide.”
Purchasing the couture brand would simplify the company’s ownership of Christian Dior but not completely. Christian Dior SE 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 make things much better for the company than purchasing just the couture brand.
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