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French luxury conglomerate LVMH announced it will take full control of Christian Dior Couture, in a deal that values the fashion brand at €6 billion ($6.51 billion).
The transaction values Paris-based Christian Dior SE at 260 euros per share, according to a statement. That is 15 percent higher than Dior's Monday closing price, which French billionaire Bernard Arnault controls with a 74 percent stake.
LVMH will get Christian Dior Couture, which produces the Lady Dior handbag, made-to-measure gowns and men's and women's ready-to-wear fashions.
Under the transaction, the Arnault family is offering to purchase 25.9 percent of Christian Dior shares that it does not own, which values that stake at €12 billion. The Arnault family also holds a 47 percent stake in publicly traded LVMH, which owns Dior perfumes and beauty.
Louis Vuitton Moët Hennessy SE is paying around 15.6 times earnings before interest, tax, depreciation and amortization over the past year for Christian Dior Couture, which it will procure for 6.5 billion euros under the second part of the plan.
Shares of LVMH climbed nearly 3.2 percent in early trading in Paris and Dior rose around 13 percent.
