Bernard Arnault tightens grip on LVMH with majority family stake
Europe’s richest man lifts the Arnault family holding above 50% of LVMH shares. The move strengthens control of the €280 billion luxury empire amid market weakness and succession speculation.
True to his word, Bernard Arnault has taken his family stake in LVMH to more than 50% of the luxury giant’s shares.
Through various holding companies and family trusts, the Arnaults already had more than 65% of the company’s voting rights, giving them control. But Arnault, who himself is Europe’s richest man and the group’s chairman and chief executive, said only a month ago that he wanted to increase the equity stake to cement their ownership.
By buying shares in the market, he has now taken that stake from 49.77% to 50.01%. A spokesperson said the move reflected strong confidence in LVMH’s future, even as the broader luxury cycle shows signs of cooling.
Share price weakness creates buying opportunity
Arnault has undoubtedly taken advantage in share price weakness to strike. Shares in LVMH, France’s largest company, have shed 38% of their value since a record high in April 2023, when post-pandemic demand for luxury goods peaked.
So far this year, the shares are down about 13%, valuing the group at roughly €280 billion ($330 billion). Arnault personally is reckoned to own about half that amount, making him the world’s sixth-wealthiest person.
Partner Content
Moët Hennessy sales continue to slide
In the latest results, the Moet Hennessy wines and spirits division recorded its third year of declining sales and again was the weakest performing arm.
Succession questions intensify
The increase in the family stake has heightened investor concerns about succession at LVMH.
Only last year, Arnault had the company’s articles altered so that he could remain in post at the company he founded until he is 85, giving him a potential further nine years at the helm.
He has been conducting what some observers have called a “beauty contest” among his five children to decide who might eventually take over the reins.
There are some signs. Earlier this month, Antoine Arnault joined the group’s executive committee, alongside his sister Delphine, the CEO of Christian Dior Couture. Alexandre, Frederic and Jean have yet to join that body, but all except Jean sit on the LVMH board.
Alexandre Arnault is the deputy chairman of Moet Hennessy.
Related news
Bernard Arnault boosts LVMH stake as family moves toward majority control
LVMH results offer cautious lift as wine and spirits remain under pressure
LVMH edges toward recovery as luxury demand picks up in China
