A report out of Europe suggests that Bernard Arnault, chairman of LVMH Mo‘t Hennessy Louis Vuitton SA, is finally prepared to sell the company's 20 percent stake in Italian luxury goods rival Gucci to Pinault Printemps Redoute (PPR) for $2 billion. PPR already owns 43 percent of the Gucci Group.
Though PPR is essentially in the business of distributing electrical equipment, building materials, and office products, it is also another rival in the worldwide luxury brand market. The world's third-largest luxury group operates such European retail names as Printemps, Fnac, Conforama, Redcats and Redoute (offering apparel, leisure products and home furnishings) and – in addition to its Gucci holdings – also owns a stake in several perfume lines, including Yves Saint Laurent.
The much-anticipated deal will have to be approved by Gucci chairman Domenico De Sole and head designer Tom Ford.