THE WHAT? L’Oréal has confirmed it will begin work “very soon” on evaluating a potential investment in Giorgio Armani, following new instructions from the late designer’s will outlining a phased sale or listing of the fashion house.
THE DETAILS Speaking at a fireside chat with analysts, L’Oréal CFO Christophe Babule said the beauty group will “definitely” assess an opportunity to acquire a stake in Armani. The luxury house is set to open a process for the sale or listing of an initial 15% stake within 18 months, with priority access granted to L’Oréal, LVMH, EssilorLuxottica or another peer of similar scale.
The move follows long-running speculation about Armani’s succession plans and the future of its beauty licensing, currently held by L’Oréal. Any transaction could reshape competitive dynamics in the prestige beauty and fashion sectors, depending on the acquirer and the structure of the deal.
THE WHY? A potential Armani investment would strengthen L’Oréal’s position in luxury beauty and secure long-term control over one of its highest-profile fragrance and makeup licenses amid intensifying competition for prestige brands.
Source: Reuters
The post L’Oréal Signals Imminent Work on Potential Armani Stake Following Heir Instructions appeared first on Global Cosmetics News.