Family business roundup: Acquisitions for LVMH and Hutchison Whampoa; Israel Corp to split

LVMH snapped up another Italian luxury brand while Hutchison Whampoa increased its grip on the Irish mobile networks market; Israel Corp is planning a split.

LVMH
Bernard Arnault's LVMH announced on 28 June it has bought famous Milan-based café and confectioner Pasticceria Confetteria Cova for an undisclosed sum.

The family-owned business dates back to 1817 and the incumbent generation, Mario Faccioli and daughters Paola and Daniela, will remain in the company as members of the management team.

Cova has franchises in Japan, Singapore, Hong Kong and China, and LVMH is planning further international expansion for the brand.

Ofer Group
Israel Corp, the conglomerate controlled by second-gen brothers Idan and Eyal Ofer via their eponymous holding company, announced in a press release it has tabled plans to split into two separate firms to get debt under control and to increase the market value of its core activities.

Ofer Group has a 55% stake in Israel Corp, which has interests in chemicals, energy, transportation and shipping.

If the split goes ahead, a new company would be composed of Israel Corp's least profitable divisions – its energy, shipping and automotive units – while its lucrative chemical and oil activities would remain with Israel Corp.

Under the current plans Israel Corp would continue to be listed on the Tel Aviv Stock Exchange, while the new company will be listed on a foreign exchange and/or the Tase.

Hutchison Whampoa
Three, the mobile network owned by Li Ka-shing's Hong Kong-based conglomerate Hutchison Whampoa, has agreed a deal with Spanish company Telefonica to buy its O2 business in Ireland.

The €780 million deal will bring Three's share of the Irish mobile networks market to 37.5%.

Three may pay an additional €70 million for the network if O2 reaches certain financial targets. The deal is still subject to regulatory approval.