Possible Moncler Deal Drawing Attention to Italy’s M&A Activity

MILAN — Will it or won’t it? The year 2019 closed without a definite answer on whether Kering will buy Moncler and market sources contend the price has been a stumbling block, slowing down the alleged negotiations. According to a source, who believes Kering is seriously considering a takeover of Moncler, the deal could be in the range of 13.5 billion euros to 14 billion euros, a 30 to 40 percent premium on the outerwear brand’s capitalization of 10 billion euros. Moncler’s chairman, chief executive officer and shareholder Remo Ruffini toned down the speculation in December, stating that he “would like to clarify that from time to time he maintains contacts and interacts with investors and other sector participants, including the Kering group, in order to explore strategic potential opportunities to further promote the successful development of Moncler. At the moment, there is not any concrete hypothesis under consideration.” Kering had no comment on the rumors. The speculation arose shortly after the Tiffany & Co. acquisition by LVMH Moët Hennessy Louis Vuitton in a blockbuster $16.2 billion agreement and several industry observers saw Kering’s move as a response to that deal. Flush with cash, Kering has been at the center of several M&A rumors,

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