On April 25, the Arnault Family Group, owners of LVMH, announced the two-fold strategic project on the publicly held Christian Dior shares; comprising of the simplification of the structures through a mixed public offer to obtain the shares the Family does not currently hold consisting of €172 (US$187) in cash and 0.192 Hermès International1 (“Hermès”) shares for each Christian Dior share, completed by two secondary offers, in cash and in Hermès shares respectively; and the strengthening of Fashion & Leather Goods division of LVMH through the acquisition of Christian Dior Couture from Christian Dior for an enterprise value of €6.5 billion (US$7.06 billion).

“This project represents an important milestone for the Group. The corresponding transactions will allow the simplification of the structures, long requested by the market, and the strengthening of LVMH’s Fashion & Leather Goods division thanks to the acquisition of Christian Dior Couture, one of the most iconic brands worldwide”, said Bernard Arnault, Chairman and CEO, LVMH. “They illustrate the commitment of my family group and emphasize its confidence in the long-term perspectives of LVMH and its brands. I am delighted to announce this project today and thus continue and reinforce the development of LVMH in France and worldwide”, he added.

The Arnault family owns a 47% stake in LVMH. According to the Group, the boards of both Christian Dior and LVMH are unanimously in favour of the US$13.1 billion deal.