LVMH Edition Luxury Big M & A: Who Will Be The Next Target?

At the Cannes Film Festival in France, Chinese movie star Fan Bingbing appeared on the red carpet. She saw her wearing a LV long coat, wearing a LV narrow hat and carrying a LV bag. Her middle finger was wearing a LV diamond ring with a big pigeon egg. Her feet were a pair of LV high heels, and the perfume she was emitting was also fascinating.

Of course, this scenario is fabricated by the author, and the actual situation is not so.

However, this scene is possible, for it is obvious to all that LV is proceeding at an alarming speed.

"I don't want any luxury goods to be called LV someday."

A white-collar worker working in an office building said.

Bernard Arnott, the head of the French luxury giant Louis mohin group (LV), has just become the fourth riches in the world.

It depends on its "Crazy" acquisition and successful commercial operation.

In March 7th, LV announced $3 billion 700 million in holdings.

Although Bvlgari is the smallest luxury jewelry company in the world, they are the most proud.

Bvlgari used to say, "don't sell much money."

LV's takeover has shifted people's attention to the negative news of their companies.

Not long ago, the designer of Arnault's start-up brand ChristianDior was fired for racial discrimination.

And LV's acquisition of Hermes (buying 20% of the company) was also considered unfriendly.

Although Arnault and LV insist that they only like Hermes, they seek "cooperation" and "cooperation".

Many fans worry that Bvlgari, which has 127 years of history, will be pipelined and lose its exquisite workshops culture.

A "fan" worried that expensive craftsmen would be expelled.

Huaxing capital CEO package said: "too bad.

Bvlgari's IPO was made in London, when Bvlgari was the real high-end brand, and the average price of the single product was above $25 thousand.

At that time, we thought that we could have something for Bvlgari as a souvenir when the listing was completed.

As a result, people say, "sorry, investment banks and lawyers are not our target customers."

So I never thought of it today.

LV insiders say the acquisition of Bvlgari is part of the new strategy.

LV's line of sight has shifted from Pinault's PPR, and they have decided to buy Richement, especially their Cartier jewelry brand.

Through the commercial advantages of LV, Arnault will challenge Richemont, Cartier and JohannRupert.

The battle with Gucci's handbag is over.

The jewel war is about to start.

Cartier's boss, JohannRupert, got through the luxury jewellery market.

BernardArnault then bought Bvlgari.

With the increase of Bvlgari's power, LV's strength in jewelry and watch area will be greatly enhanced, but it still lags behind Richemont.

Richemont is the leader of jewelry in the world.

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But according to market experts, Arnault is likely to buy other jewellery and watch brands immediately.

Moreover, this acquisition is likely to cause an avalanche of luxury acquisitions.

Sales of luxury goods in China, Russia and India are increasing.

It is predicted that 600 million consumers will enter the luxury market by 2025.

The acquisition of the loss of Bvlgari seems to have been agreed by both sides.

After negotiations, LV will buy all the shares owned by the family.

LV exchanged 16 million 500 thousand of its shares for Bvlgari's 152 million 500 thousand stake.

It is estimated that 51% of the family's shares are worth 1 billion 840 million euros.

LV will also offer a price of 12.25 euros per share to other shareholders of Bvlgari. The final cost of the acquisition may be between 3 billion 700 million euros and 4 billion euros.

Bvlgari will nominate two people to participate in LV's board of directors, and Bvlgari's chief executive, FrancescoTrapani, will become the head of the LV watch and jewelry department.

At present, LV has penetrated into the industry of fashion, leather goods, cosmetics, jewelry, clocks, wine and retail, and has more than 50 luxury brands.

No wonder Arnott led the LV to be named "snake" by netizens.

The "snake" has been covetous for those who may bring huge profits, and at the same time relentlessly lose profits.

Since 1987, LV has made over 60 acquisitions and sold 48 companies.

As Bvlgari CEO, Trapani judged that the big group will become the leading role in the luxury industry.

Most of the famous brands in Europe are developed by workshop family businesses. They are passed down from generation to generation, low-key and elegant, and each brand pays attention to its distinctive characteristics.

The international financial crisis has brought shocks to many such enterprises, and some have not yet been restored.

At this time, mergers and acquisitions of large groups became a trend.

LV's acquisition is by no means smooth sailing.

France's famous luxury group Hermes has been trying to get rid of LV's ties for many years, demanding Arnott to quit.

However, Arnott, who has always been good at business operation, has quietly increased the shareholding ratio from 17% to more than 20% despite his opposition. He has become the largest independent shareholder of Hermes.

Some people admire Arnott's business strategy and adventurous spirit. In others' eyes, he is a wolf in cashmere cashmere sweater.

In Arnott's eyes, luxury is nothing more than a business, but in Hermes's view, elegance is a kind of power, and the two way of thinking runs counter to it.

Many people have played Snake game on cell phones.

Compared with many dazzling games, this little game is not very difficult, as long as we have a good grasp of the direction and speed.

However, people are greedy, especially after playing more skillfully, will consciously speed up the pace of adjustment, unwittingly, snake body lengthened, playing people did not realize the danger, the final result is often in the most elated moment suddenly die.

The same is true of mergers and acquisitions.