All Things Newz
Law \ Legal

Trending: Fashion Brand Mergers And Acquisitions – Corporate and Company Law



To print this article, all you need is to be registered or login on Mondaq.com.

The 
Fashion Law reports
 that a growing number of M&A deals
and investment rounds are bringing together some of the biggest
names in the fashion and luxury space. In November 2021, $1.15
billion brought Cartier’s parent company Richemont, Chinese
e-commerce titan Alibaba, and fashion retail platform Farfetch
together. Meanwhile, LVMH Moët Hennessy Louis Vuitton decided
to acquire Tiffany & Co. around the same time.

While many brands have decided to merge, either because of the
effects of the COVID-19 pandemic or capital restrictions, they
should ensure that risks are managed. Mergers and acquisitions are
presented as great options, but companies must undertake thorough
due diligence to assess the legal, reputational, and financial
risks. 

Consumer perception and acceptance of mergers of luxury brands
may be the biggest risk posed. A loyal consumer may be upset due to
a merger with their chosen brand, especially if the two merging
entities were once competitors. Local brands considering mergers
will need to ensure compliance with regulatory bodies like the
Competition Commission and the takeover regulation panel before
entering into mergers or acquisitions, as non-compliance penalties
could potentially sink a deal.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Corporate/Commercial Law from South Africa



Source link

Related posts

CMS Announces Changes To The MSSP Designed To Increase MSSP Participation And Promote Equity Within The MSSP – Healthcare

No Rest For California Employers In 2022! Here Are The Latest Employment Laws In The Golden State – Employee Rights/ Labour Relations

Spring 2022 Economic Outlook: Planning In An Uncertain, Supply-Constrained World – Fiscal & Monetary Policy