One of the world’s largest and most expansive fashion and luxury companies just got bigger. Bernard Arnault, head honcho at LVMH is moving to take over Christian Dior by buying out minority shareholders. LVMH already owns Christian Dior Parfums, but this new and complex buyout will also put them at the helm of Christian Dior haute couture, leather, men’s and women’s ready-to-wear, and footwear.
Joining LVHM would put Dior among competitors like Louis Vuitton, Fendi, Celine, Givenchy and many ore brands. The respective boards of Christian Dior and LVHM are supposedly welcoming the move as it will streamline processes at Dior. If the deal goes through, it will certainly strengthen the LVHM portfolio, Dior is already raking in profits so this consolidation is unlikely to have a negative impact on the company.
This decision can’t have been made lightly considering that LVHM is forking over a whopping $13.1 billion for Parisian fashion house Dior. However, the Arnault family will pay in both cash and Hermes shares. However, even if the sale goes through the organization Christian Dior which now own Dior Couture, will remain in existence and will go on to own 41 percent of the share capital in LVMH as well as 56.8 percent of voting rights which makes it the deciding vote in the conglomerate.
[Via:Nytimes]
