After four years French conglomerate LVMH finally made peace with a defensive Hermès by backing off trying to take full ownership of the French luxury house.

Brokered by the Commercial Court of Paris, an agreement was made where after years of tense relations LVMH has finally backed off its aggressive acquisition over the French luxury house’s shares. This heated debacle started back in 2010, sparked by when Hermès first found out that its shares were being bought by LVMH which were increasing in quantity each time, and LVMH was accused then of trying to take full ownership of the French luxury house. The CEO of Hermès then was Patrick Thomas and he along with the rest of the board reacted angrily in defence calling the acquisition as a act of rape.

According to the regulations of the agreement made between the luxury conglomerate and the French luxury house, LVMH will “distribute all its Hermès shares to its shareholders, on the understanding that LVMH’s largest shareholder, Christian Dior will in turn distribute the Hermès shares it receives to its own shareholders.” In addition to the agreement signed, LVMH CEO Bernard Arnault’s companies – LVMH, Dior and Groupe Arnault- according to a report by WWD, have agreed not to acquire any shares in Hermès for the next five years.

 

Comments

About The Author

Lucy Weng
Collaborator / Web Editor
Google+

A writer and fashion design student currently based in Montreal, Lucy is the overseer behind the ultimate secret address book for all things to eat, see, do, and experience within this artistic city. When she's not working, the Toronto native splits her off time traveling between various cities in search of new discoveries.

Dress To Kill Feed