LVMH and Hermès sign peace treaty← Back
About 3 Years, 3 Months, 1 Week, 1 Day, 15 Hours, 11 Minutes ago.
Hermès International and luxury conglomerate LVMH Moet Hennessy Louis Vuitton have declared truce bringing a four year altercation to an end.
The dispute started in 2010 when the LVMH group announced it had acquired a 23.2% holding of luxury label Hermès, known for it’s iconic Birkin bag, and Carré silk scarves. Hermès had objected to this move, leading to Hermès being sanctioned by the AMF regulatory body in 2013. The disagreement was bought to end this week in a deal brokered by the Commercial Court of Paris.
In the agreement, LVMH will distribute the stake to its own shareholders by 20th December 2014 at the latest. Dior, who counts as the largest of the French conglomerate’s shareholders, will then have to distribute its allocated share to its own shareholders. Once the distribution has been completed, LVMH will own an 8.5% stake in Hermès International. The deal also establishes that LVMH, as well as Groupe Arnault and Dior, won’t acquire any shares in Hermès International for the coming five years. Both parties have expressed their satisfaction with the deal.
As a result of this shares in Hermès fell by 9%, a drop worth 2.8 billion euros, whilst LVMH’s rose by 2.7%.