Valentino refutes rumours of sale
But that could be just the move that incoming Kering CEO Luca de Meo needs to reset the debt-laden Gucci owner – even if it comes at a cost.
Under current Chairman and CEO Francois-Henri Pinault, Kering bought a 30 per cent stake in Valentino for 1.7 billion euros in 2023 from Qatari fund Mayhoola to diversify away from slowing star brand Gucci, with a commitment to buy the rest by 2028.
However, the deal includes options that could force Kering to buy the remaining 70 per cent as soon as May 2026, company filings show, potentially adding to Kering's 10-billion-euro-plus debt pile.
In a note to clients this month, Bank of America analyst Mark Xu estimated the potential liability at 4-6 billion euros ($4.7-7.0 billion), depending on Valentino's performance.
Revisiting the Valentino deal, which would require bringing Mayhoola back to the negotiating table, will be one of the first and biggest challenges for De Meo, industry experts and bankers say. The former Renault boss was picked in June to turn round the 24-billion-euro French luxury conglomerate.
"With incoming CEO Luca de Meo joining in September 2025, not having to deal with the integration of Valentino may be one less thing on his already long to-do list," RBC analysts said on Friday.
Contacted by Reuters about the report in Italian newspaper Corriere della Sera that Valentino could be put up for sale, Mayhoola CEO Rachid Mohamed Rachid said it was "untrue".
Kering declined to comment.
Kering shares rose 3.5 per cent after the report, outperforming the STOXX Europe 600 index, suggesting investors would welcome a sale.
Besides Gucci, the group owns brands including Bottega Veneta and Yves Saint Laurent and high-end perfume label Creed, which Pinault bought in 2023 for 3.5 billion euros amid a wider acquisition spree. Reuters
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