The French luxury group LVMH, led by billionaire Bernard Arnault, is to take full control of Christian Dior, in a complex US $13 billion deal that reunites the fashion house with the perfume and other Dior brands.
According to LVMH, the deal is aimed at reinforcing its fashion and leather goods division.
LVMH will also buy the Christian Dior couture brand from the Christian Dior holding company for an enterprise value of 6.5 billion euros (US $7.1 billion). Arnault has controlling stakes in both the current Diorstructure and LVMH.
"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," Chairman and CEO, LVMH, Bernard Arnault said in a statement.LVMH added in a statement that the overall deal would boost its earnings-per-share within the first year of its completion, with the transaction expected to be closed during the second half of 2017.
The statement says the boards of both companies approved the transactions on Monday. The proposed deal will still need regulatory approval and consultations with workers. The companies also hope to issue the public offer in June and finalise the purchase of Dior Couture in the second half of this year.