LVMH, the company behind Louis Vuitton, has reportedly bought a 14.2% stake in Hermes International worth some $2 billion.
According to Women’s Wear Daily, LVMH will make an announcement about the business dealings on Monday. It’s believed the company will say it intends to “be a long-term shareholder of Hermes and to contribute to the preservation of the family and French attributes which are at the heart of the global success of this iconic brand.“
While it seems unlikely that LVMH will make a play for a larger share of the company at this point, this current stake should make the company pretty untouchable. While Louis Vuitton does well in its own right, Hermes is the undeniable jewel of the luxury world. Even in the face of the global recession, the label stayed strong with a jump in stock of more than 88% over the last year.
I’m most interested in what this means for the future. Will Hermes continue to be a family brand, or will we eventually see it given over to the larger corporation? What do you think?
[Image Source: Bernard Goldbach/Flickr]
