Kering and Mayhoola Postpone Valentino Acquisition
Kering and Mayhoola have announced that they are postponing their plans for Kering to fully acquire Valentino. The agreement, which was initially set to be completed by 2028, has been pushed back to 2029. This decision comes as Kering is in the midst of a CEO transition.
Background on the Acquisition
In 2023, Kering acquired 30 percent of Valentino, with the option to purchase the remaining 70 percent by 2028. The PUT options, which enable Kering to access the purchase of Valentino at a certain price without obligation, remain unchanged. The deal is part of a wider strategic partnership between Kering and Mayhoola, which could lead to Mayhoola becoming a shareholder in Kering.
Strategic Partnership and Future Plans
The joint statement from Kering and Mayhoola confirms their commitment to supporting the development of Valentino and achieving long-term success. The partnership is seen as a positive step for both companies, with Mayhoola potentially becoming a shareholder in Kering. The postponement of the acquisition is expected to give both parties more time to complete the deal, with Mayhoola benefiting from a potential increase in Valentino’s valuation after the house’s turnaround.
Current Challenges Facing Valentino
Valentino is currently navigating a difficult period, with the early collections of creative director Alessandro Michele yet to deliver commercial success. The luxury fashion market remains highly competitive, and Valentino’s turnover decreased by 2 percent to €1.31 billion in 2024, with EBITDA down 22 percent to €246 million. The postponement of the acquisition is expected to give Mayhoola the opportunity to sell the remaining stake at a higher valuation if the house’s fortunes improve.
Kering’s Financial Situation
Kering is also dealing with its own financial challenges, with the group’s turnover falling by 15 percent to €3.7 billion in the second quarter of 2025. The company’s debt reached €9.5 billion by the end of the first half of 2025. The incoming CEO, Luca de Meo, has cited debt reduction as one of his top priorities. The postponement of the Valentino acquisition is expected to give Kering more time to pay off its debts before proceeding with the deal.
