Arnault delivers on promise to own majority of LVMH

One of the world’s richest men and CEO of LVMH, Bernard Arnault, has followed up on his promise to buy enough shares in the company to tip over the 50% mark.

He had previously said at an earnings presentation on January 27: “Our family group has about 50% of LVMH’s capital and since now we’re at the start of a new year, we’re entitled to acquire a bit more.

“This year we’ll cross the 50% threshold. So we’ll own over 50% of the share capital. So we believe in what we do, and we’re showing it in that way.”

He’s now delivered on that assertion, raising his stake in LVMH to 50.01%, up from 49.77%. His and his family’s control over the company has never been in doubt, as they already had voting rights that were well beyond the 50% threshold. This suggests that the recent buyback of shares is about a message to the market as much as anything else.

“It testifies to the strong confidence of Bernard Arnault and his family in the future of LVMH,” said a family spokesperson.  

The share price is down 38% from its April 2023 peak — not helped by its disappointing sales results from Q4 last year — but the company is still the biggest company by market capitalisation on France’s CAC40 index, and worth about €280 billion.