How much is enough? If you are LVMH or Louis Vuitton Moët Hennessy, it is never enough. The luxury giant has a portfolio of over 60 of the world’s most prestigious brands and they are still hungry for more and taking over more brands to expand their portfolio further. Their investment in the French luxury brand Hermes and their subsequent legal battle to block defensive moves made by Hermes was in the news and a big talking point in the industry.
In the mean time they have quietly taken over the Italian luxury brand Bulgari. It is one of the most prestigious names in the field of jewelry and watches. As per reports in NY Times LVMH is taking control of the Italian luxurious jeweler. It is not a cash deal but the Bulgari family who own the company are handing over 51 percent stake of their company in exchange of LVMH stocks. They will also be entitled to seats on the LVMH board.
LVMH will also be making an open offer for the balance shares of the company and make it a wholly owned subsidiary of the mega-conglomerate. The luxury juggernaut of LVMH seems unstoppable. They have already taken over some of the big brands like Christian Dior, Fendi and Céline. Bulgari is a 127 year old brand and enjoys very strong presence in Europe and Asia including some hotels. It is indeed a very valuable acquisition for LVMH.
Via: dealbook.nytimes
