French luxury group LVMH has agreed to acquire fashion brand Christian Dior’s final 26 %. In return, it will pay 12.1 billion euro.
Strengthen fashion division
LVMH will pay 260 euro per share and shareholders can choose to be paid in cash or to get Hermes shares in return. The amount is 15 % higher than Dior’s final share price when the stock exchange closed on Monday. The acquisition fits a shareholders’ request, namely that it would simplify the company’s intricate ownership structure.
LVMH’s fashion and leatherwear division will be much stronger thanks to the Dior addition. The fashion group already owns brands like Givenchy, Kenzo, Louis Vuitton and Donna Karan, but also has a varied portfolio of wine, liquor, jewelry and cosmetics. Looking at turnover, LVMH is the world’s largest luxury group.
