LVMH to acquire Bulgari for 3.7 bln euros

March 8th, 2011 - 3:48 pm ICT by IANS  

Rome, March 8 (IANS/AKI) French luxury goods maker LVMH Moet Hennessy Louis Vuitton will acquire control of Italian competitor Bulgari in a deal worth about 3.7 billion euros.

LVMH, an international group with over 50 luxury brands, will buy the Bulgari family’s 50.4 percent share of the Rome-based company for 1.87 billion euros in stock.

It will offer other Bulgari investors 12.25 euros for each of their shares, the companies said in a joint statement Monday.

“Our entrance into LVMH will allow Bulgari to reinforce its worldwide growth and to realise significant synergies,” Bulgari CEO Francesco Trapani said.

Bulgari, founded in 1884, will be LVMH’s second-largest family shareholder in the LVMH and be granted two seats on the board.

Controlled by Bernard Arnault, LVMH is ranked 7th on Forbes’ Magazine’s 2010 list of the world’s wealthiest billionaires with a net worth of $27.5 billion.

–IANS/AKI
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