LVMH increases its stake in Hermès by purchasing additional shares
In a significant move on December 15, the French luxury goods conglomerate LVMH increased its stake in the iconic French fashion house Hermès. According to the Autorité des Marchés Financiers, LVMH's holding in Hermès rose from 21.4% to 22.3%.
However, LVMH's statement did not indicate a change in its intention to buy Hermès, despite mentioning potential future share acquisitions. The luxury group emphasised that it has no intention of taking over Hermès, a stance it has maintained throughout the ongoing situation.
The increase in LVMH's stake in Hermès came in response to the Hermès family's announcement of a holding company designed to control more than 50% of the company's capital. This move by Hermès is aimed at securing more control over the company and preventing a possible takeover by LVMH.
LVMH's response was swift, coming within one day of the Hermès family's announcement. The luxury group did not disclose the exact percentage of its increased stake in Hermès, nor did it reveal specific market conditions or circumstances that led to the increase.
In a statement, LVMH did not rule out acquiring more Hermès shares in the future, contingent on market conditions and circumstances. The group reiterated that it has no intention of buying Hermès, but the potential for future share acquisitions remains.
The creation of the holding company by Hermès is a significant development in the ongoing saga between the two luxury brands. The holding company, which is owned by the existing Hermès shareholders, is expected to strengthen Hermès's independence and protect the company from potential takeover attempts.
The Autorité des Marchés Financiers, the French equivalent of the National Securities Market Commission (CNMV), confirmed the increase in LVMH's stake in Hermès. Despite LVMH's increased stake, the future of Hermès remains in the hands of its current shareholders, as LVMH exited its stake following a long dispute, selling about 23% of Hermès shares to the current shareholders of Hermès.
This latest move in the ongoing battle between LVMH and Hermès underscores the importance of maintaining independence and control in the highly competitive world of luxury fashion. As the two brands continue to navigate their relationship, the future of Hermès will likely remain a topic of interest for fashion enthusiasts and investors alike.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
