Kering has acquired 30% of Valentino

The Kering Group and Mayhoola, the Arab investment fund, have recently entered into a binding agreement that could change the face of fashion. The agreement involves Kering acquiring 30% of Valentino's shares for a significant cash sum of 1.7 billion euros. This strategic move not only grants Kering a significant stake in Valentino but also includes an option for potential acquisition of 100% ownership of the brand by 2028. This potential addition to Kering's portfolio could reshape power dynamics within the luxury industry.

But the partnership between Kering and Mayhoola goes beyond the acquisition. The agreement also allows for the possibility of Mayhoola becoming a shareholder of Kering in the future, indicating strong mutual interest and an entirely new scenario for investments and financing of future projects. Under Mayhoola and Jacopo Venturini's leadership, Valentino has become one of the most profitable brands in the world—a rising trajectory that, with Kering's involvement, could take the Italian brand to new heights. As part of the agreement, Kering will assume a significant role in Valentino's governance, gaining representation on the Board of Directors. Nevertheless, Mayhoola will remain the majority shareholder, holding 70% of Valentino's capital stock, and will continue to drive the brand's successful elevation strategy that has brought immense success to the luxury house.