Frasers Group, Hugo Boss’ second-largest shareholder, seeks to increase its stake in the German fashion brand, filing a request with the German competition authority. The watchdog will assess the impact on the market.
Bollywood Fever: Frasers Group, the British sports and fashion retail giant, has filed a request to acquire additional shares in German luxury fashion house Hugo Boss, according to a filing with the German competition authority seen by Reuters on Friday. This move follows Frasers’ recent increase in its stake, making it Hugo Boss’ second-largest shareholder.
A spokesperson for the Bundeskartellamt, Germany’s competition authority, confirmed the filing but did not disclose the number of shares Frasers intends to purchase. The watchdog, responsible for assessing the impact of mergers and acquisitions on the German market, now has up to one month to evaluate Frasers’ plans.
Frasers Group, which owns a portfolio of brands including Sports Direct, House of Fraser, and Jack Wills, has been steadily increasing its stake in Hugo Boss. Earlier in August, Hugo Boss acknowledged a regulatory filing that indicated Frasers had exceeded a 15% ownership threshold in the company.
The potential increase in Frasers’ stake could further solidify its influence over Hugo Boss, a brand known for its premium fashion offerings. However, the details of Frasers’ intentions remain unclear, as the company has not yet commented on the filing.
The Bundeskartellamt’s review will focus on ensuring that the proposed acquisition does not harm competition within the German market. The outcome of this assessment could have significant implications for both companies and the broader fashion industry.
As the situation develops, all eyes will be on the decision of the German competition authority and the strategic moves by Frasers Group in its bid to expand its influence over Hugo Boss.
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