French competition authorities are to investigate LVMH’s £1.3bn acquisition of a 14.2% stake in Hermès.
LVMH, the luxury goods giant behind Louis Vuitton, acquired more than 15 million shares in Hermès last month, taking its total stake in the luxury womenswear and menswear retailer to 17.1%.
LVMH said it did not plan to take a controlling stake in Hermès but has not ruled out buying more shares. It has options to acquire a further 2.9% of the company.
France’s market regulator AMF said it would check whether its rules were respected in the deal.
In France, companies are required to declare stock purchases when they exceed five percent of the share capital.
LVMH said it welcomed the AMF inquiry, which is likely to take several months.