PARIS — LVMH Moët Hennessy Louis Vuitton’s chairman and chief executive, Bernard Arnault, announced on Tuesday several steps to take over Christian Dior in a $13.1 billion USD deal to consolidate control over Christian Dior.
The deal would simplify LVMH’s relationship with Dior by buying out Dior’s minority shareholders. LVMH already owns Parfums Christian Dior, and this deal would give LVMH ownership of the Christian Dior haute couture, leather, men’s and women’s ready-to-wear, and shoe divisions.
The Arnault family offered to buy the 25.9 percent of Dior it does not already own. The family would pay via a mix of cash and Hermès shares, valuing Dior at €260 ($282 USD) a share. This represents a 15 percent premium over Dior’s Monday closing price.
LVMH’s offer to take over the Dior couture division will not simplify ownership entirely. The company called Christian Dior, which owns the brand’s couture business, will continue to exist and will own 41 percent of the share capital in LVMH, plus 56.8 percent of voting rights, making it the conglomerate’s controlling shareholder.
Analysts reacted positively to news of the deal with Christian Dior, which had long been expected by industry observers. The transaction is expected to close in the second half of this year.
The Arnaults’ decision to offload Hermès shares comes approximately three years after the family received stock in the house after an effort by LVMH to build a stake in the company.