Kering Postpones Valentino Acquisition: French Luxury Giant's New Strategy

French conglomerate Kering and Qatari investment group Mayhoola are changing the rules of the game surrounding Italian fashion house Valentino. A modified shareholders' agreement postpones the full takeover of the brand, potentially signaling strategic caution and a new approach to financial management.

When Kering purchased a 30% stake in Valentino in 2023, the market was convinced it was only the first step towards a complete takeover of the Italian fashion house. Initially, Qatari Mayhoola, the brand's current owner, could have forced the French to buy back the remaining 70% of the shares as early as 2026 or 2027. Now, the deadline has been extended: put options can only be triggered in 2028 and 2029.

Kering, which had the right to acquire Valentino in its entirety in 2028, will also have to wait a year longer. All other provisions of the agreement remain unchanged. This means that Valentino's ownership structure will remain unchanged for the next four years.

Valentino on hold until 2028/photo: Shutterstock

The decision to postpone the deadlines is one of the first moves by Kering's new CEO, Luca de Meo . According to Reuters, his priority is to reduce the group's debt, which currently stands at €9.5 billion . In this light, postponing the costly Valentino acquisition seems like a rational move.

Kering, owner of brands such as Gucci, Saint Laurent, Balenciaga, and Bottega Veneta, reported revenues of €17.2 billion in 2024 and currently employs 47,000 people. However, recent years have not been free from turbulence, and the luxury market increasingly requires flexible strategies.

Meanwhile, Valentino, the flagship brand in Mayhooli's portfolio, is experiencing its own challenges. In 2024, the fashion house's revenue fell 2% to €1.3 billion, while its operating EBITDA fell by a staggering 22% to €246 million. Riccardo Bellini recently took over as president and is tasked with restoring its momentum.

Mayhoola, directly controlled by the Qatari government, remains a key investor in the luxury sector. Besides Valentino, its portfolio includes France's Balmain, Italy's Pal Zileri, and the Turkish department store chain Beymen.

The delay in the full takeover of Valentino is not just an accounting move but also a signal that stability is paramount in the luxury fashion world. The Italian fashion house will therefore remain in a kind of limbo for the next few years, and the industry will be closely watching how Kering and Mayhoola play this game.