Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Hermes International SCA finally reached an agreement with LVMH Moet Hennessy Louis Vuitton SA. The companies revealed that they settled their four-year dispute that began when LVMH started the accumulation of a large stake in its smaller competitor.

As the Wall Street Journal reported, the two companies explained: By virtue of the agreement reached today, LVMH and Hermès have brought to an end the conflict, and all related actions, between them.”

The companies revealed that LVMH, the worlds biggest luxury-goods maker, agreed to redistribute its stake in Hermes to its shareholders and institutional investors. Currently, the company holds a 23% stake in its smaller rival. The redistribution is to leave the owner of LVMH – Groupe Arnault with an 8.5% interest.

In addition, under the terms of the settlement, shares of Hermes wont be purchased by LVMH or any of its holding companies over the next five years. The two counterparts explained that the process is expected to be finalized by December 20th.

As reported by Bloomberg, LVMH said in a statement that Hermes Executive Chairman Axel Dumas and LVMHs owner Bernard Arnault “both express their satisfaction that relations between the two groups, representatives of France’s savoir-faire, have now been restored”.

According to the terms of the deal, the shareholders of LVMH will get one share in Hermes for every 21 shares in LVMH, which they currently own.

One of the analysts at Exane BNP Paribas – Luca Solca said in an e-mailed statement for Bloomberg that this agreement is “the end of the siege”. He also said that the resolution reduces “the speculative appeal of Hermes which goes back to being a normally traded company”.

Hermes International SCA lost 5.00% by 11:26 GMT to trade at €249.60 per share in Paris, marking a one year change of -2.56%. The company is valued at €27.74 billion. According to the Financial Times, the 15 analysts offering 12-month price targets for Hermes International SCA have a median target of €254.00, with a high estimate of €300.00 and a low estimate of €190.00. The median estimate represents a -3.33% decrease from the last price of €262.75.

LVMH Moet Hennessy Louis Vuitton SA rose by 2.56% to €136.45 per share, marking a one-year change of +1.15%. The company is valued at €67.64 billion.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Intuitive Machines Stock Takes 50% Hit, Share Price Falls Under $8 Amid Moon Landing StrugglesIntuitive Machines Stock Takes 50% Hit, Share Price Falls Under $8 Amid Moon Landing Struggles Key momentsIntuitive Machines' stock plummeted 50% in 24 hours after its Athena lander's uncertain lunar touchdown. Shares, closing at $11.26 on Thursday, dipped below $8 post-market, reaching a $7.05 low on Friday. The Athena […]
  • Grain futures mixed, with wheat touching the lowest since June 2012Grain futures mixed, with wheat touching the lowest since June 2012 Grain futures were mixed on Monday, with wheat touching the lowest since June 2012 amid expectations for a record global harvest. Prices were pressured by the lowering probability of winter-kill on the grain as weather forecasting models […]
  • EUR/USD lost ground after ECB rate decision, US employment dataEUR/USD lost ground after ECB rate decision, US employment data The euro fell sharply against the US dollar on Thursday, following the interest rate decision by the European Central Bank (ECB) and the release of series of data on employment out of the United States, which added to the case that the Federal […]
  • Forex Market: USD/ILS daily forecastForex Market: USD/ILS daily forecast Yesterday’s trade saw USD/ILS within the range of 3.4560-3.4752. The pair closed at 3.4648, losing 0.14% on a daily basis.At 7:42 GMT today USD/ILS was up 0.35% for the day to trade at 3.4770. The pair broke the first key daily resistance […]
  • Forex Market: NZD/CAD daily forecastForex Market: NZD/CAD daily forecast During yesterday’s trading session NZD/CAD traded within the range of 0.9345-0.9406 and closed at 0.9384.At 6:13 GMT today NZD/CAD was adding 0.13% for the day to trade at 0.9398. The pair touched a daily high at 0.9404 at 6:00 […]
  • Spotify may charge $5.99 more for new streaming serviceSpotify may charge $5.99 more for new streaming service According to a report by Bloomberg News, Spotify may charge up to $5.99 per month on top of existing subscriptions for a new music streaming service, which will grant users access to higher-quality audio, remixing tools and concert […]