LVMH/PRADA STAKE IN FENDI OK’D BY EC
MILAN — The European Commission gave antitrust clearance last Friday to LVMH Moet Hennessy Louis Vuitton and Prada Holding BV’s purchase of 51 percent of Fendi.
After a month-long investigation, the European Commission, based in Brussels, decided the operation “does not raise competition concerns since the market shares of the companies involved will be less than 25 percent in all parts of the luxury goods sector.”
In response to objections previously raised, the Commission said “leather goods do not create any competition problems,” given the number of strong competitors in the market such as Gucci, Hermes, Chanel, Ferragamo, Longchamp and Yves Saint Laurent.
The houses of Prada and Fendi declined to comment.
As reported, Fendi handed over a 51 percent stake to LVP, the new Vuitton/Prada holding, last October. The Fendi sisters, Carla, Franca, Alda, Anna and Paola Fendi, retain 49 percent of the storied fur and accessories company founded by their parents in 1925.