The French antitrust agency, Autorité de la concurrence, has authorized, without conditions, Hermès’ plans to take full control of J3L, that it currently jointly controls, on the grounds that the transaction does not hinder competition.
J3L produces high-end metal parts for luxury companies, especially for handbags, briefcases, wallets and shoes. The fair trade agency estimates that the supplier has a market share of less than 25 percent in France and that other producers of metallic components are valid alternatives. It added that Hermès has less than 20 percent of the share of its own market and faces strong competitors such as LVMH, Kering and Chanel.
It also pointed out that J3L was already significantly intregrated within Hermès prior to the proposed acquisition due to the luxury goods group’s joint ownership of the company.