The Arnault family, which controls the French luxury products maker, LVMH Louis Vuitton Moët Hennessy SE, announced a $13bn plan to buy the 25.9% outstanding stake of the fashion firm Christian Dior SE. With this, the Arnault family will take complete control of Christian Dior.
The move will also allow LVMH to take full charge of Christian Dior Couture, which is Christian Dior’s operarting subsidiary. Though the family already had a 74.1% stake in Christian Dior, Christian Dior Couture was considered as an independent affiliate of LVMH. Announcing the plans, Mr. Bernard Arnault, the founder and chief executive of LVMH said, “The plan would simplify the structure of the businesses which had long been requested by the market.” He also opined that addition of Christian Dior Couture will strenghten LVMH’s fashion and leather goods business.
Source: Foxbusiness.com, April 25, 2017.