LVMH to take over Christian Dior for 6.5 billion euros

LVMH to take over Christian Dior for 6.5 billion euros

French billionaire Bernard Arnault will combine the Christian Dior fashion brand with his LVMH luxury goods group as part of a 12 billion euro ($13 billion) move to simplify his business interests, a restructuring long demanded by other investors.

Shares of LVMH Moet Hennessy Louis Vuitton SE (LVMUY) and Christian Dior SA ( CHDRY ) were gaining around 3 percent and 12 percent, respectively, in Paris after the announcement of LVMH's planned buy out of the luxury brand.

In addition, the Arnault Family Group is making a public offer for the Christian Dior shares it doesn't now hold.

- At the same time, LVMH will buy Christian Dior Couture from Christian Dior for an enterprise value of 6.5 billion euros.

Set up 70 years ago, Christian Dior Couture "is one the most iconic brands worldwide", LVMH said.

More news: Dwayne Johnson Reportedly Being Eyed for 'Fast and the Furious' Spinoff

LVMH's fashion and leatherwear division will be much stronger thanks to the Dior addition.

The brand expects the deal - which will unite Christian Dior make-up and perfume, haute couture, leather, men's and women's ready-to-wear and shoes businesses under one roof - to reach completion at the end of May or early June.

The deal would be accretive to LVMH earnings per share from the first year.

The initial cash-and-Hermes-shares offer for Christian Dior would be followed by another secondary offer, valuing each Dior share at 260 euros - a premium of 14.7 percent compared to Dior's closing price of 226.85 euros on April 24. "I am delighted to announce this project today and thus continue and reinforce the development of LVMH in France and worldwide".

Related Articles

  • N'Golo Kante wins Professional Footballers' Association Player of the Year award

    N'Golo Kante wins Professional Footballers' Association Player of the Year award

    It means the world to be chosen by the players to be Player of the Year. "We have to fight for six more games", Kante added. Man City's Lucy Bronze "leads the contenders" for the Women's PFA Player of the Year award , says Sky Sports .
    Mel B's 'abusive' ex granted supervised visitation with their daughter

    Mel B's 'abusive' ex granted supervised visitation with their daughter

    Mel B's lawyer has claimed that Belafonte has links to the porn industry as bitter divorce and custody battle continues. The source claimed that Mel B and Belafonte invited Rita Ora over to their house for a threesome.
    People Dead - Including Children - Following Fire in Queens Village

    People Dead - Including Children - Following Fire in Queens Village

    Policein Harrison County, Indiana said that she had been found unresponsive Saturdayafter authorities received a 911 call. The victims haven't been identified but are all from the same family, officials said.
  • Sessions says critics have 'no sense of humor' after Hawaii gaffe

    It's within his authority constitutionally and explicit statutory authority. Thank goodness Ramos can't be criticized as one of those island judges.
    Petr Cech insists Arsenal main priority is Champions League

    Petr Cech insists Arsenal main priority is Champions League

    We have a very important derby on Thursday and our aim now is to finish in a position that will get us to the Champions League. Arsene Wenger's side had only picked up three wins out of eight games in all competitions before the Wembley victory.
    Nokia 3310 up for pre-orders in Europe; sale starts April 28

    Nokia 3310 up for pre-orders in Europe; sale starts April 28

    If the report is to be true, Nokia will be taking a massive leap towards success and may even return to their once glory days. The device is priced at 49 euros (roughly Rs 3,500) which might get slightly cheaper if the devices are made in India.
  • Kim's desire for peace 'deciding factor' in US-North Korea relations

    Kim's desire for peace 'deciding factor' in US-North Korea relations

    That kind of rhetoric has unnerved allies in Japan and South Korea, who would be at the sharp end of any North Korean response. US President Donald Trump has said that will not happen, and stepped up pressure on the isolated North.
    It's over. April's giraffe cam ends

    It's over. April's giraffe cam ends

    Animal Adventure Park shared a list of the most popular names so far as people vote to select one for April's baby boy. The channel had its biggest day on Saturday, with more than 14 million live views.

    No need for Trump's approval to use massive bomb

    But former President Hamid Karzai accused the United States of using Afghanistan as "a testing ground for new and unsafe weapons". The US hasn't provided any data on how many ISIS fighters were killed by the MOAB.
  • April the giraffe gave tiny zoo big financial boost

    April the giraffe gave tiny zoo big financial boost

    While one fan told how the update had come in the "nick of time", explaining: "Having major Animal Adventure Park withdrawals". Remember, all votes do cost $1, and the money donated for your votes goes to help some great causes.
    'The Fate of the Furious' laps new films at box office

    'The Fate of the Furious' laps new films at box office

    From that it has made $ 745 million overseas and this means it is the highest grossing movie at the 2017 foreign box office. Fox's animated comedy The Boss Baby remains in second place after being knocked out of the top spot last weekend.
    Call Of Duty WWII Officially Announced By Activision

    Call Of Duty WWII Officially Announced By Activision

    That title followed Call of Duty 4: Modern Warfare, the game that began series' pivot towards, well, more modern warfare . It has been 10 years since we last returned to the second World War and now it looks like we will be returning this fall.