Christian Dior to come under full control of LVMH in £10bn deal

French billionaire Bernard Arnault is to combine the Christian Dior (Swiss: CDI.SW - news) fashion brand with his LVMH luxury goods group in a £10bn spending spree aimed at simplifying his business interests.

LVMH - behind several brands including Louis Vuitton and Moet Hennessy (Paris: FR0000121014 - news) - is to buy the remaining 26% of
Christian Dior it does not already own for £220 per share.

It was also to fold the Christian Dior Couture brand into the LVMH group, paying Christian Dior £5.5bn in the process.

The agreements will unite the 70-year old fashion label - worn by film stars from Grace Kelly and Elizabeth Taylor to Jennifer Lawrence and Natalie Portman - with the Christian Dior perfume and beauty business already owned by LVMH.

Mr Arnault said the moves - long demanded by investors - were an "important milestone".

He added: "They illustrate the commitment of my family group and emphasise its confidence in the long-term perspectives of LVMH and its brands.

"I am delighted to announce this project today and thus continue and reinforce the development of LVMH in France and worldwide."

LVMH said the overall deal would boost earnings within the first year of its completion, with the transactions expected to close during the second half of 2017.