Bernard Arnault boosts LVMH stake as family moves toward majority control
LVMH chairman and chief executive Bernard Arnault has stepped up share purchases following weaker-than-expected annual results. The move brings the Arnault family closer to holding more than half of the luxury group’s share capital.
Bernard Arnault is tightening his grip even further on LVMH, the world’s leading luxury goods empire, which includes the Moet Hennessy wines and spirits business.
Following depressed annual results late last month, Arnault, who is chairman and chief executive, announced plans to take his family’s shareholding in the group to more than 50%.
Just a day later, he began buying shares after seeing US$15 billion wiped from his net worth by market reaction to the lower-than-expected numbers.
In the past two weeks, he has spent about US$440 million on adding LVMH shares to the family holdings.
Family already holds near-majority stake
According to the latest LVMH annual report, the Arnault family held 49% of the share capital and 64.8% of voting rights at the end of 2024, already giving it substantial control.
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The new share purchase takes him closer to achieving his objective of outright family control this year over the US$270 billion group on which his wealth is based.
Forbes puts his personal wealth at US$166.6 billion.
Investors watch for confidence move
Analysts have suggested the share buying could be symbolic, potentially serving as a show of confidence amid the headwinds facing the luxury industry.
Succession remains unclear
Arnault has recently succeeded in changing LVMH’s articles of association to allow him to stay in office until he is 85, if he wishes. He is 76 and shows no sign of slowing down or surrendering any part of his control over the giant luxury goods group.
He has been criticised in some quarters for giving any indication of an eventual handing over to any of his five children, whom he has been putting into various executive roles in what has been termed a “beauty contest” for the eventual succession.
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