Moët Hennessy Louis Vuitton, known as LVMH, is said to be in discussion with Ralph Lauren about a possible "acquisition" of the brand. However, officials from both parties have refused to elaborate on the report.

News website Axios recently reported that LVMH, the holding company of Louis Vuitton, Christian Dior, Tiffany & Co., and other luxury brands, have undertaken "exploratory conversations" about an acquisition of the American business for several years.

 

 

 

 

 

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The rumor is said to arrive as Ralph Lauren, the brand's founder, chairman, and chief creative officer, has been mulling over succession planning for the company.

Anticipated to become one of the biggest apparel deals in history
If the deal goes well, the Ralph Lauren group, which has an asset value of slightly under $8 million, will solidify LVMH's presence in the US with one of the greatest apparel acquisition agreements in history.

 

 

 

 

 

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Furthermore, analysts think the potential acquisition economically makes sense. As per Forbes, LVMH is currently trading at roughly 16 times its earnings, while Ralph Lauren is trading at less than 9 times. Although neither party admits nor declines these claims, it fuels suspicion that a deal is just around the corner.

Experts weigh in that the possibility of the acquisition between the two firms is still highly feasible. Ralph Lauren has already reformed significantly by 2020 by dismissing 15% of all workers. Now, the American fashion label outperforms expectations once more. As a result, the label may be preparing for a prospective sale.

LVMH presently boasts over 75 luxury brands, 150,000 workers globally, and yearly revenues of $73 billion, making it one of only a few luxury corporations that seem to take care of the brand itself and preserve its expansion.

LVMH seeks to break grounds in U.S. market
Last year, LVMH finalized its $15.8 billion acquisition of Tiffany & Co, and insiders reported to Axios that the early success of the jewelry label has given the firm more confidence in acquiring another acquisition in the U.S. market.

 

 

 

 

 

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After Tiffany's acquisition, LVMH has since changed its branding to target younger buyers. To achieve this, the firm appointed huge famous names as ambassadors, most notably Jay-Z and Beyoncé.

The acquisition expanded LVMH's existing enormous portfolio of 75 brands, which includes Louis Vuitton, Dior, Celine, and Givenchy.

Louis Vuitton was one of LVMH's initial acquisitions, back in 1987. Ever since then, the company has acquired holdings in major labels such as Givenchy, Céline, Marc Jacobs, Gucci, Hermés, Tiffany, and most recently, Fenty and Off-White.