In a market downturn, the founder Arnault aggressively invests 1.6 billion dollars to increase his control over LVMH Group.

Notice that French billionaire Bernard Arnault has long sought to strengthen his control over the LVMH conglomerate. The luxury goods giant, which he founded nearly forty years ago, has seen his efforts reach a peak this year. According to filing documents from the Paris stock market, the 76-year-old tycoon quietly purchased around 1.4 billion euros (about 1.6 billion dollars) worth of LVMH shares over the past eight months since February. These acquisitions, carried out through his holding company, come at a time when the company's profits are weak and the industry as a whole is in decline, leading to a significant drop in stock prices. This ongoing buying spree brings Arnault and his family one step closer to controlling this high-end brand giant. The group, founded by him in 1987, has grown through acquisitions and expansion to become France's largest company, with a market value of 302 billion euros. This latest increase in shares also highlights Arnault's focus throughout his career on LVMH rather than diversifying investments. According to the Bloomberg Billionaires Index, Arnault's net worth is 195 billion dollars. His stake in LVMH is the largest part of his personal wealth, accounting for 49% of the share capital at the end of last year, with nearly 65% of the voting rights. The extensive business under this enterprise includes numerous brands, from Louis Vuitton and Dior, to cognac producer Hennessy and jewelry maker Bulgari. In this year's buying frenzy, Arnault, through his family holding company Financire Agache and its listed company Christian Dior SE, has acquired around 2.5 million LVMH shares, accounting for about 0.5% of the company's shares. Christian Dior SE's sole activity is holding shares in LVMH. Trading documents show that Arnault paid an average price of around 566 euros per share - it dropped to 448 euros in June - while the stock closed at 612 euros last Friday. According to the holdings data in the annual report, the total purchases made by mid-September were significantly higher than in previous years, and were made against a backdrop of several weak quarters of financial data. Prior to this, LVMH saw a rebound in its stock price after reporting unexpected sales growth earlier this month. Firmly Holding "It is worth noting how confident Bernard Arnault is in LVMH," said AlphaValue analyst Frdric Janvrin. He believes these acquisitions may reflect Arnault's desire for "absolute majority" ownership of the company, despite already owning nearly two-thirds of the voting rights. Janvrin estimates, based on financial reports, that Arnault's investments outside of LVMH are relatively small compared to his total wealth, around 4 billion euros. Therefore, the approximately 1.1 billion euros used by Financire Agache to purchase LVMH shares could have been better allocated for diversifying wealth. According to its website information, Financire Agache's business focuses on the luxury goods sector through Christian Dior and LVMH, while also holding an unspecified "diversified financial investment portfolio." Arnault also invests through other tools, including Agache - which acquired a majority stake in the Paris FC football club last year - and supports the tech-focused venture fund Aglae Ventures, which invests in a range of companies from Airbnb, ByteDance to Netflix and Impossible Foods. LVMH and Arnault also support the private equity firm L Catterton, specializing in consumer goods. Since acquiring the fashion company Christian Dior in the 1980s and founding LVMH, Arnault has been strategizing to consolidate his control. His biggest deal came in 2017, when he proposed a 12 billion euro acquisition of a minority stake in Christian Dior SE. At the time of that deal, Arnault hinted at his long-term planning, saying the price might be a bit expensive, "but in 30 years, we will be happy we did it." This transaction simplified the complex ownership structure and coincided with the luxury trend led by China poised for explosive growth, combined with the phenomenon of "revenge spending" during the pandemic, helping Arnault briefly become the world's richest man in 2022. By the end of last year, the Arnault family owned 97.5% of Christian Dior (almost entirely through Financire Agache), compared to 74% before the tender offer. The practice of buying stocks during a period of low prices this year is reminiscent of a similar move Arnault emphasized nearly a decade ago. In a speech to the Oxford Union in 2016, he recounted how he bought LVMH shares after the 2008 financial crisis and said the price of those shares subsequently more than doubled.