Louis Vuitton buys stake in Hermès

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LVMH (Moët Hennessy Louis Vuitton), the luxury group, has bought a 14.2% stake in rival luxury firm Hermès International.

The €1.45bn (£1.3bn) deal takes LVMH’s total share in Hermès to 17.1%.

The group claims it has no intentions of making a bid to takeover Hermès and is not seeking a seat on the executive Board.

LVMH adds that it intends to be long-term share holder of Hermès and “contribute to the preservation of the family and French attributes which are at the heart of the global success of this iconic brand”.

LVMH also says it “fully supports the strategy implemented by the founding family and the management team”.

LVMH also owns luxury brands Louis Vuitton, Dom Pérignon and Tag Heuer.

Earlier this year the luxury goods firm entered the hotel market with branded hotels in a French ski resort and the Middle East.

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