LVMH chairman Bernard Arnault has made a $13 billion bid to bring the long-affiliated but technically separate Christian Dior brand under the umbrella of his luxury goods conglomerate. Arnault, who has expanded LVMH to include dozens of leading luxury brands — from yacht makers and spirits brands to Louis Vuitton, Hermes (Arnault still holds a small stake following the parties’ showdown in 2014), Givenchy, Celine and Loewe.
Under the terms of the deal, which is intended to simplify complex ownership structures, "Groupe Arnault, primarily an investment firm, will make a cash-and-share offer for the minority of Christian Dior shares it doesn't currently own in June. The deal values Dior at 260 euros per share. After that, LVMH, which is also controlled by Arnault, will take control of the Christian Dior Couture high-end fashion house business for 6.5 billion euros ($7.1 billion)," according to the AP.
LVMH Chief Financial Officer Jean-Jacques Guiony said in a statement on the heels of the news of the bid that Arnault "decided it would make sense to invest 12 billion euros of their private money" into further consolidating their holdings. "That's a major decision and major commitment, and proof of faith and confidence for the future."
It is not a done deal yet, however. "The proposed deal will still need regulatory approval and consultations with workers," per the AP.