Gucci owner in talks on deal for Moncler

NEW YORK/PARIS: Kering SA has held exploratory talks with Moncler SpA about a potential deal for the Italian skiwear maker, people with knowledge of the matter said.

Senior executives at Kering, the owner of Gucci and Saint Laurent, and Moncler have held preliminary discussions about a combination, according to the people.

“There’s no certainty the talks will lead to a transaction,’’ they said, asking not to be identified because the information is private.

Shares of Moncler have risen 33% this year, giving it a market value of about €10 billion ($11 billion).

Any takeover would require Kering founder Francois Pinault to win over Moncler chief Remo Ruffini, who is the company’s biggest shareholder.

An investment vehicle controlled by Ruffini owns 22.5% of Moncler, according to data compiled by Bloomberg.

A representative for Kering declined to comment, while a representative for Moncler wasn’t immediately available to comment outside regular business hours.

Adding Moncler would help Kering keep pace with larger rival LVMH Moet Hennessy Louis Vuitton SA, which recently agreed to buy jeweller Tiffany & Co for $16.2 billion in the biggest-ever luxury deal.

The rivalry between LVMH Chairman Bernard Arnault and Kering’s Pinault has fueled the transformation of the industry over the past few decades, as the French companies raced to assemble a broad array of labels under the same roof.

Kering’s offerings include Ulysse Nardin watches and Boucheron jewellery, as well as fashion labels such as Alexander McQueen and Bottega Veneta.

It has become increasingly dependent on Gucci, which provided more than three-quarters of the company’s operating profit in the first half of the year.