Now Reading:

LVMH taking over Bulgari


LVMH taking over Bulgari


There has been more major consolidation in the luxury goods world as LVMH – the world’s biggest such company – announced it is to take over the Italian family-owned watch and jewellery maker Bulgari.

The 3.7 billion euro deal is an all share affair and the Bulgaris will become the second biggest family shareholder in LVMH.

The offer prices Bulgari’s shares at a 60 percent premium to its average level over the last month.

French billionaire Bernard Arnault has built LVMH solely on acquisitions. Its brands now include Louis Vuitton handbags, Hennessy cognac and Moet & Chandon champagne.

Analysts believe rival luxury groups could embark on a fresh wave of consolidation, encouraged by strong sales from big emerging luxury markets such as China.

This deal comes after LVMH built up a 20.2 stake in smaller rival Hermes which, like Bulgari, is family controlled. LVHM called that a long term investment. In response Hermes has created a controlling family holding within the group to block LVMH’s advances.

Every story can be told in many ways: see the perspectives from Euronews journalists in our other language teams.

Next Article