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The French luxury group LVMH, led by billionaire Bernard Arnault, has announced the purchase of Dior in a $13 billion deal that will see all operations folded into the LVMH luxury empire.

With Parfums Christian Dior already under its control, the mammoth deal will see LVMH taking ownership of Christian Dior and its haute couture, leather, men and women’s ready-to-wear, and shoe businesses.

A LVMH statement reads:

A simplified public offer by the Arnault family group for Christian Dior shares — that it does not currently hold — and take form of a primary offer consisting of €172 per share in cash and 0.192 Hermès International shares for each Christian Dior share, and would be completed by two secondary offers, in cash and in Hermès shares respectively.

If you’re confused, then don’t worry, you’re not the only one. Here’s the breakdown: Arnault is currently serving as the chairman and majority shareholder of Dior, as well as the chairman and chief executive of LVMH. Prior to the acquisition, Christian Dior SE was the main holding company of LVMH, but will now be integrated into the group.

“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,” Arnault explains.

LVMH expects the deal to be formalized by late May.

In other fashion news, Dior recently cut the red ribbon on this luxury retail space in Tokyo.

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