French billionaire Bernard Arnault has decided to consolidate control over Christian Dior for in a €12.1 billion ($13.2 billion) deal by merging the Dior operations into the LVMH luxury empire. The Arnault family is offering to buy out minority investors in Christian Dior for €260 ($284) a share, uniting ownership of these fashion icons.
Arnault has a net worth of $46.3 billion and has had control of the parent companies of Dior and Louis Vuitton since the 1980s – while adding on powerful brands like Fendi and Bulgari. "Reuniting Christian Dior Couture and Christian Dior Parfums, so one brand under one leadership, has to be a good thing for LVMH shareholders…It does clean up the corporate structure," Stephen Mitchell, head of strategy for global equities at Jupiter Asset Management told Bloomberg.
LVMH rose 4.9 percent in Paris trading and Dior did the same by 13 percent after news of the consolidation emerged.
"This is an operation that shows our confidence in the French economy as well as in LVMH going forward…It will allow us to increase the synergies that already exist between LVMH and Christian Dior Couture," Arnault stated in a press conference.
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