FRANCE. LVMH Moët Hennessy Louis Vuitton has obtained clearance from relevant competition authorities and the European Commission for the proposed acquisition of Italian luxury goods company Bulgari.
In line with Italian Stock Exchange regulations, and as announced in March, LVMH will launch a tender offer for the shares owned by Bulgari minority shareholders in the weeks ahead.
In March the Bulgari family announced its decision to join forces with the French luxury group “in order to reinforce, in accordance with its history, values, craftsmanship and identity, the long-term development of the Bulgari Group”.
The €3.7 billion deal will see LVMH acquiring a 50.4% stake, issuing 16.5 million shares in exchange for 152.5 million shares held by the Bulgari family, making them the second-largest family shareholder of the LVMH Group.
In compliance with the Italian Stock Exchange regulations, LVMH will also submit a Public Purchase Offer at the price of €12.25 per share on the remaining shares held by minority stockholders.
Paolo and Nicola Bulgari will remain Chairman and Vice Chairman of the Bulgari Board of Directors, respectively.
Bulgari CEO Francesco Trapani will assume the management of LVMH’s Watches & Jewelry division, He has also been appointed to the LVMH Board of Directors.
Philippe Pascal will become an adviser to LVMH Chairman and CEO Bernard Arnault.
In recognition of Pascal’s achievements as the head of the Group’s Watches & Jewelry activities, Arnault said: “Since his appointment to the head of Watches & Jewelry in 2001, Philippe Pascal has led the development, integration and internationalisation of this business, which has become a major player under his leadership. Thanks to his knowledge of the luxury sector, his discipline and creativity, he was able to strengthen the identity and prestige of each Maison in the division.”
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