We have talked about the battles between Hermès and LVMH in the past and it looks like it may have drawn to a close.
Reuters reports that the family owners of Hermès said earlier this week that they had finalised the creation of a holding company with 50.2 per cent of the share capital to protect the luxury house from any hostile takeover.
The creation of the holding, otherwise known as H51, has been in the works since last autumn when fashion giant LVMH revealed that it had secretly built up a 17 per cent stake in Hermès.
LVMH’s move raised fears among some family members that it was seeking to take over the group.
“The creation of this holding structure confirms the unity of the family in their commitment to defend the independence of Hermès to preserve its values and culture,” the family wrote in a press release.
The statement also said that the holding H51 had negotiated a priority right to buy a further 12.3 per cent of Hermès shares in the eventuality that some family members wanted to sell.
Image credit: skyscrapercity.com
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