Three of the biggest names in the business – LV, Hermes and Dior – reach a fragrant agreement.
In a communiqué headed “LVMH and Hermès mend relations” LVMH has announced that the President of the Commercial Court of Paris, Franck Gentin, has overseen a conciliation to end a conflict between the two groups thus restoring “a climate of positive relations between them”.
It marks an end to a fashion-forward war which saw Hermès resisting LVMH’s incursion onto their share register, and allays concerns the monogrammed maven wanted a healthy piece of Hermès action.
The two parties have signed an agreement under which the LVMH Group will now 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, all to be done and dusted by December 20.
Related entities LVMH, Dior and Groupe Arnault “have undertaken not to acquire any shares in Hermès for the next five years”. It leaves Groupe Arnault holding about 8.5 per cent of the capital of Hermès International.
The communiqué noted that both Hermes CEO (and sixth generation family member) Axel Dumas and LVMH’s head Bernard Arnault “express their satisfaction that relations between the two groups, representatives of France’s savoir-faire, have now been restored”. Tres bien!