In a £10bn deal, LVMH, the French luxury group who is led by the billionaire family Bernard Arnault, will be taking full control of Christian Dior.
Bernard Arnault is France’s richest man and is the chief executive at LVMH which was fored in 1987. He owns 74.1% of Christian Dior with a controlling stake, wants to buy the remainder for €12bn, or €260 a share. The Arnault family will then sell Christian Dior Couture to LVMH for €6.5bn.
The deal will bring the whole Christian Dior Brand under one roof and will include fashion and fragrances.
According to Arnault, the transactions demonstrated his family’s commitment to LVMH and would result in “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”.
After the news LVMH shares soared over 4% on Tuesday.
Head of luxury goods at Exane BNP Paribas, Luca Solca said: “It adds a strong brand to the LVMH portfolio at a reasonable valuation.”
Christian Dior was founded by the French designer in 1946.