Are luxury giants planning a spending spree?
Kering, LVMH, and Richemont, three of the world’s biggest luxury companies, could be looking to make big-ticket purchases, altering the luxury landscape over the coming year. LVMH and Kering have both divested themselves of brands that didn’t fit with their wider ethos (DKNY and Puma, respectively), and Richemont obviously has its acquisitions appetite back, having recently dropped a cool €2.7 billion on a bid for full control of Yoox Net-a-Porter (YNAP).
The Luxury World’s big players have all seen positive performance over the past 12 months
SOURCE: Yahoo Finance
Luca Solca, the head of luxury goods at Exane BNP Paribas, makes a strong case, writing in the Business of Fashion, that these three companies are ready to lead a drive towards further consolidation of the luxury goods industry in France:
“LVMH is clearly in pole position to lead industry consolidation through M&A and further extend its lead. Kering is the natural challenger. Not only does it harbour multi-category ambitions, it is pushing forward on its newly found successes with Gucci, Saint Laurent and Balenciaga. Kering could certainly move forward with a high-profile merger. A tie-up with Richemont would be a master stroke. Equally striking would be an LVMH tie-up with Chanel.”
With the luxury sector looking healthier than it has for years, and a number of smaller players looking ripe for purchase, is a game-changing acquisition just around the corner?
Dominion holds LVMH, Kering, and Richemont in its Global Trends Luxury Fund.
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