LVMH takes control at Fendi

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LVMH Group has announced an agreement to acquire Prada's stake in Fendi, representing 25.5% of the company's capital. The transaction means that LVMH will hold a 51% stake alongside the Fendi family, who hold 49%.

LVMH said it is delighted with the new agreement which paves the way for accelerated development of one of Italy's greatest luxury brands. Since 1999 Prada and LVMH have jointly been involved in reorganisation and development of Fendi through their respective shareholdings. In the last 18 months the number of company-owned Fendi outlets has increased from four to 83 worldwide.

LVMH Fashion Group president Yves Carcelle said: "This transaction is a very positive strategic step and an excellent opportunity for LVMH to take control of a brand with significant development potential. The quality and geographic transferability of Fendi's products position the brand among the luxury leaders."

Prada Holding ceo Patrizio Bertelli said: "This transaction gives Prada the financial wherewithal to strengthen its development strategy focusing on brands in which it owns either all, or a majority share of the capital. This decision has been made in the vein of friendly cooperation which has always typified our relations with LVMH."