French luxury goods group LVMH, led by billionaire Bernard Arnault, announced on Tuesday a series of moves to take over Parisian fashion house Christian Dior by buying out minority shareholders, simplifying LVMH’s relationship with Christian Dior in a $13 billion deal. With Parfums Christian Dior already under control, the deal will see LVMH also take ownership of Christian Dior haute couture, men’s and women’s ready-to-wear, leather and shoe businesses.
As part of the proposal, the Arnault family group has offered to buy the 25.9 percent of Christian Dior it doesn’t already own for €12 billion (a 14.7 percent premium over Dior’s latest share price), and LVMH would then buy Christian Dior Couture for €6.5 billion. The boards of Christian Dior and LVMH are in favour of the deals, which fuse together the entire Dior brand, with shares in LVMH raising by more than 4 percent when the news were announced.
“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,” said Bernard Arnault in a statement.
As well as LVMH and Dior, Arnault also owns stakes in French luxury goods rival Hermes and supermarket chain Carrefour. LVMH owns more than 70 brands worldwide including Bulgari, Marc Jacobs, Dom Perignon, Louis Vuitton, Tag Heuer, Kenzo, Sephora and Veuve Clicquot.