By Andy Sambidge
Qatar Holding amasses 1.03% stake in LVMH Louis Vuitton Moet Hennessy
Sovereign wealth fund Qatar Holding has built up a stake of more than one percent in French luxury goods group LVMH Louis Vuitton Moet Hennessy.
Qatar Holding holds a 1.03 percent interest in the company, the French company said in a legal filing cited by Zawya Dow Jones.
Based on LVMH's share price of EUR135, the stake is worth around EUR699m ($914m). Qatar Holding declined to comment, it reported.
Qatar's investment firms have been on a buying spree in France in recent months, including the purchase of football team Paris Saint-Germain.
Qatari funds have also bought 10 percent of French media company Lagardere and 5.6 percent of construction giant Vinci.
Earlier this week it was reported that Qatar had a two percent stake in oil group Total.
The wife of the Qatari emir bought a controlling stake in French handbag maker Le Tanneur & Cie in May last year while the Gulf state also has an interest in London department store Harrods.
Qatar Holding's investment in LVMH made it the sixth-largest shareholder, the report said.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
It is enough interesting as I think why Qatar has such geo focus concerning its outside investments. I does buy minority blocks of securities in large companies have these companies potential for next growth ? Why would not it change its strategy and to start purchase controlling interest smaller companies in? Last has more potential for growth. If Emir says on knowledge based economy it would be logically to suppose Qatari funds shall invest in tech segments of economy despite of it they place their investments into well-known brands in luxury segment. If consider such approach as aims to keep on the promotion of Qatar in light of future FIFA World Championship 2022 may be it is right approach .How than realize Emir's conception about knowledge based economy despite of Oil based economy?
How does investing in Moet & Chandon, Dom Perignon, Hennessy and other cognac, wines and spirits fit in with Qatar's religious values?