Arnault's giant LVMH luxury goods brand will buy the 26% of Dior it doesn't already own, and plans to fold Dior's 70-year-old couture brand within the rest of the larger group.
By making it a wholly-owned subsidiary, LVMH would be able to harness its "high growth potential" of Christian Dior Couture, the statement said.
As well as streamlining the business and simplifying its structure for the market's benefit, the move will also allow "the strengthening of LVMH's fashion and leather goods division thanks to the acquisition of Christian Dior Couture, one of the most iconic brands worldwide", Arnault explained.
The group already owns the perfume vertical - Parfums Christian Dior - and will now take over ready-to-wear, couture, leather and shoes.
The public offer values each Christian Dior share at 260 euros, and represents a premium of 14.7 percent over Christian Dior closing share price as of April 24, 2017, as well as an 18.6 percent premium over the 1 month average share price. The family owns 74.1% of Christian Dior, which in turn owns a controlling stake in LVMH.
- Semyrhamis now owns 74.1 percent of Christian Dior's share capital and 84.9 percent of its voting rights.
The deal reshuffles LVMH's complex corporate relationship with Christian Dior and the Arnault family. Revenue at Christian Dior has doubled over the last five years, as profitability has soared during the same timeframe.
The boards of directors of Christian Dior and LVMH were "unanimously favourable" to the plans, LVMH said.
"It adds a strong brand to the LVMH portfolio at a reasonable valuation and on an accretive basis and it reduces the risk of LVMH potentially buying "trophy assets" which would dilute returns on capital, the expert said.