LVMH to Take Control of Christian Dior in $13.1 Billion Deal -
By ELIZABETH PATONAPRIL 25, 2017
LONDON — The LVMH Moët Hennessy Louis Vuitton luxury empire
and the French billionaire Bernard Arnault announced on Tuesday a series of moves to take over Christian Dior in a $13.1 billion deal to consolidate control over the 70-year-old Parisian fashion house.
LVMH, the world’s biggest luxury group by revenue, already owns Parfums Christian Dior,
and the deal would give it ownership of the Christian Dior haute couture, leather, men’s and women’s ready-to-wear, and shoe businesses.
The LVMH fashion and leather goods division would then buy Christian Dior Couture for an enterprise value of €6.5 billion.
The company called Christian Dior, which owns the brand’s couture business, will continue to exist
and will own 41 percent of the share capital in LVMH, plus 56.8 percent of voting rights, making it the conglomerate’s controlling shareholder.
The Arnaults’ decision to offload Hermès shares comes nearly three years after the family received stock
in the Paris-based luxury leather goods house after an effort by LVMH to build a stake in the company.
“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,” Mr. Arnault said in a statement.