Agreement Extension Pushes Full Ownership Timeline to 2028/29 Amid Financial and Market Pressures
Kering’s path to full control of Valentino just got a little longer. The French luxury group and Mayhoola, the Qatari-backed investment firm that owns the majority of Valentino, have agreed to revise their shareholder agreement—postponing all put and call options tied to Kering’s acquisition of the remaining 70 percent stake in the brand.
Under the new timeline, Mayhoola’s rights to sell its stake—previously exercisable in 2026 and 2027—will now be delayed until 2028 and 2029. Kering’s option to buy that stake also shifts, with the earliest possible acquisition now set for 2029. The adjustment comes just as Kering introduced its incoming CEO, Luca De Meo, at the company’s recent general meeting, suggesting a broader strategic reset may be underway.
The original deal, struck in 2023, saw Kering purchase a 30 percent stake in Valentino from Mayhoola, with a roadmap toward full ownership. That agreement included a performance-linked price structure and the possibility for Mayhoola to become a Kering shareholder. Both parties reaffirmed their alliance this week, saying they “remain entirely committed to its long-term success.”
While the revised timeline may cool near-term speculation, analysts believe it also offers Kering a necessary financial breather. Luca Solca of Bernstein estimates the full buyout could require as much as 3.4 billion euros—no small sum for a company whose net debt ballooned from 200 million euros in 2021 to 10.5 billion euros by the close of 2024. The added runway could be crucial as Kering continues restructuring efforts, including real estate divestments, store closures, and a scaling back of wholesale activity. Earlier this year, Simon Property Group acquired full control of Kering’s two Italian outlet centers for roughly 350 million euros.
Meanwhile, Valentino’s recent performance may have helped shape the decision to delay. The house posted a 3 percent revenue dip in 2024 to 1.31 billion euros (2 percent on a constant currency basis), and earnings before interest, taxes, depreciation, and amortization fell 22 percent to 246 million euros. While direct retail sales—including e-commerce—rose by 5 percent and now make up 70 percent of the business, Valentino has aggressively pulled back from wholesale, down about 20 percent in 2024, with more reductions expected through 2025. Current forecasts point to a double-digit revenue decline this year, likely diminishing Mayhoola’s appetite to exercise its option early.
At the leadership level, significant change is also underway. Riccardo Bellini—formerly of Chloé and Maison Margiela—has officially stepped into the CEO role at Valentino, effective September 1, replacing Jacopo Venturini. Venturini’s final major act was the March 2024 appointment of Alessandro Michele as creative director. Michele’s first collection is set to debut during Paris Fashion Week in October 2025. Meanwhile, former creative director Pierpaolo Piccioli is expected to resurface soon at Balenciaga under Kering.
Mayhoola, whose luxury footprint also includes Pal Zileri, Beymen, and Balmain, appears to be taking the long view on its Valentino investment. And for Kering, the move to press pause offers a chance to regroup before making its next major financial commitment.
Luca De Meo will officially take the reins as Kering CEO on September 15. He’s promised to outline a broader group strategy in the spring, with some changes expected to begin before year’s end. François-Henri Pinault, who handed over the CEO title after two decades, remains chairman.