An Italian with a French? Yes!

Guess who's associated with who?
Here is the answer:

French LVMH (Louis Vuitton Moët Hennessy) Group ,which already owns 50 luxury brands in different industry that includes Louis Vuitton, Christian Dior, Fendi, Moët & Chandon (wines and spirits) and Tag Heuer (watchmaking), is going to take the great majority of Italian jeweller Bulgari's capital.
In fact, an agreement has been conclude during the week-end with Bulgari's family ,whose origin dates back to 1884, and has been approved by the board of directors of famous LVMH sunday night.

Source: unitedfashionstates.com

Why did Bulgari made this choice? 
Well, to simply reinforce the development in long term of Maison Bulgari in the respect of its heritage, values, "savoir-faire" and its identity.
The company's familiy actually estimate: "We find in Bernard Arnault (CEO of LVMH) and in the group he built, all the elements that we have been looking for in order to guarantee Bulgari's perenity: a capacity to receive and form an associtation within a powerful organization of brands which finds a way to grow and to fulfil their potential by preserving their indentity and orginality"
 In order to buy this controlling stake, LVMH will issue 16,5 million of shares to pay the 152,5 millions of shares brought by the family. This transaction actually develop this Bulgari's part of 51% to 1,84 billions €! Yes that's a lot!

Bernard Arnault, CEO of LVMH
Source: The Real Timer

And regarding shares hold by the minority of the Diamond company, the French group will make a public buying offer of 12,25€ per share which basically reprensents a maximum amount of 1,79 billions of €uros to pay out.
Therefore, with this friendly operation, The Italian will become the Second familial shareholder of LVMH and the board of directors will remain the same as it used to be for the jeweller. And in addition, Bulgari's family will get two positions at LVMH's board and Francesco Trapani will supervize the whole watchmaking-jewellery activities in the Second semester of this year.
A trader based in Paris said: "It's an expensive operation but with great quality!"

Francesco Trapani, CEO of Bulgari
Source: Boursier.com

What's more according to financial analysist, this will allows the luxury group to increase its exposition in the watchmaking-jewellery of 70%, which turnover could reach 1,8 billions € that is 8,5% of the group total activites against only 5% now.
Then a source close of this affair said: "With Bulgari, we will be able to become the real competitor of Cartier "which belongs to another famous group Richemont.
Of course, the group is going to become a big challenger for that brand! 

So Cartier, be aware!
LVMH wasn't the only one interested in Bulgari! According to several sources, rival bidders for this Italian brand, included Richemont ,which besides must be livid with rage, and another French group PPR, Pinault-Printemps-Redoute, (Boucheron, Gucci, etc.).
 And here is a little view of the"new union" so far:

Source: Capital

Well, we can say that it is doing well, isn't it?
Both are in growth and keep increasing!
Can't wait to see the 2012 results!!

Seems like Bernard Arnault has shown he can get along with a family even after Hermès issue!

Source: LVMH