LVMH purchase 50% of Armand de Brignac

LVMH purchase 50% of Armand de Brignac

The week debuted with an agreement in the liquor sector for LVMH and Jay-Z

Moet Hennessy, the wine and spirits division of the French conglomerate LVMH, announced that it bought 50% of Armand de Brignac. The American rapper and businessman Jay-Z owns the champagne brand.

Jay-Z initially bought 50% of the champagne brand also known as the “Ace of Spades” in 2006, and it became the sole stakeholder in 2014.

According to WSJ, the deal between Jay-Z and LVMH aims to grow Armand de Brignac’s global distribution. Moreover, this is not the first time the French conglomerate seeks to be more inclusive and target a diverse clientele. In the past years, artists like Rihanna, Gucci Mane, and ASAP Rocky worked together with European brands such as LVMH, Gucci, and Dior.

However, the deal came when parties and nights out are limited, affecting champagne sales. According to the Comite Interprofessionnel du Vin de Champagne, the champagne sales fell around $1.2 billion, or 18% by volume in 2020.

The financial terms of the deal weren’t made public.

After the news hit the wires, LVMH stock price lost 0.35%.

Sources: wsj.com, cnbc.com, finance.yahoo.com

This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com

JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.