Hermès and LVMH declare cease-fire over share distribution
The two French luxury rivals end their four-year battle for stake-holding power
This puts an end to the conflict between LVMH and Hermès over the former's increasing stake in the latter, which sparked speculation about a possible take-over. LVMH was also allegedly involved in insider trading, among other defamatory operations which Hermès accused the conglomerate of.
The agreement requires LVMH to distribute its 23% interest in Hermès – reportedly worth around $8.4 billion – to shareholders, which include Christian Dior. Dior is to distribute those shares to its shareholders in turn. In addition, LVMH, Dior and Groupe Arnault have consented to not acquire Hermès shares for the next five years.