Finance
Kering delays full Valentino acquisition to 2028 amid debt concerns
Published by Global Banking & Finance Review®
Posted on September 10, 2025
3 min readLast updated: January 22, 2026
Quick Summary
Kering delays its full acquisition of Valentino to 2028 due to debt concerns, impacting its financial strategy and ownership structure.
Kering Postpones Full Acquisition of Valentino to 2028 Due to Debt Issues
Kering's Strategic Delay in Valentino Acquisition
PARIS (Reuters) - Kering said on Wednesday that it will not fully buy Italian fashion brand Valentino until at least 2028, its first major move under new CEO Luca de Meo, pushing back the execution of an expensive deal that has been weighing on the heavily indebted group.
Details of the Acquisition Postponement
The deal - announced just a day after de Meo was charged by shareholders to put the struggling Gucci-owner back on track - crosses a first major item off the Italian's to-do list as he seeks to further reduce Kering's 9.5 billion euro ($11.13 billion) debt pile.
Impact on Kering's Financial Strategy
Kering's commitment to fully acquire the business from Qatar-backed fund Mayhoola, made in a deal in 2023, has been weighing heavily on the indebted French luxury group whose balance sheet has come under market scrutiny amid declining sales.
Valentino's Current Performance Metrics
Under a new agreement struck with Mayhoola, Valentino's current ownership structure will not change until at least 2028, Kering said.
Mayhoola’s put options to sell Kering its remaining 70% stake in Valentino - initially due in 2026 and 2027 - are now postponed to 2028 and 2029, Kering said, while Kering's own option to fully acquire Valentino is deferred to 2029 from 2028.
Mayhoola could not immediately be reached for comment.
Kering said in its last available annual report the full acquisition of Valentino would cost it around 4 billion euros, but the amount, calculated as a multiple of the brand's earnings, can vary.
Speaking to analysts on a call in July, Kering Deputy CEO Jean-Marc Duplaix said the amount would be "substantially below" this amount due to Valentino's current performance.
Last year, Valentino's revenue declined 2% at constant exchange rates to 1.3 billion euros, while its core earnings (EBITDA) - the crucial variable for any prospective buyer - fell 22% to 246 million euros, filings show.
In his first comments as Kering's chief executive, de Meo on Tuesday said some first decisions taken under his leadership would be announced before the year ends.
"We must continue to reduce our debt, reduce our costs. And where necessary, rationalise, reorganise, reposition some of our brands," de Meo said, adding: "These decisions won't always be easy."
($1 = 0.8538 euros)
(Reporting by Tassilo Hummel; Editing by GV De Clercq and Marguerita Choy)
Key Takeaways
- •Kering delays full acquisition of Valentino to 2028.
- •Debt concerns influence Kering's strategic decisions.
- •Valentino's ownership structure remains unchanged until 2028.
- •Kering aims to reduce its 9.5 billion euro debt.
- •Valentino's revenue and EBITDA have declined.
Frequently Asked Questions about Kering delays full Valentino acquisition to 2028 amid debt concerns
1What is debt sustainability?
Debt sustainability refers to a country's ability to manage its debt levels without requiring debt relief or accumulating further debt. It is crucial for maintaining financial stability.
2What is an acquisition?
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control. This can enhance market share and operational capabilities.
3What is financial strategy?
Financial strategy is a plan that outlines how a company will manage its financial resources to achieve its goals, including budgeting, investment, and risk management.
4What are performance metrics?
Performance metrics are standard measures used to evaluate the success of an organization or its activities. They help in assessing efficiency, effectiveness, and progress toward goals.
5What is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure used to analyze a company's operating performance.
