Macron talks big banks and LVMH
Bernard Arnault isn't a banker, but perhaps banks should take a cue from the way he built the world biggest luxury company, LVMH.
At least that's the implication from comments French President Emmanuel Macron made to Bloomberg today. In an interview at his annual Choose France investment conference, Macron called for consolidation in the European banking sector and indicated he'd even be open to seeing a major French bank like Societe Generale taken over by an EU rival in order to spur the deeper financial integration.
One model? Arnault, it seems. "Bernard Arnault consolidated this market very early," Macron said, explaining how France came to dominate the luxury and fashion industry. LVMH then consolidated the market in other parts of the world, Macron went on, "And thanks to the fact that he's listed in France, we consolidate a lot of value and value creation as well."
While Macron didn't explicitly say banks should copy LVMH, his use of mirrored language certainly suggests he sees them in a similar light.
It's a parallel that could appear attractive from a French perspective since following the logic would lead to Europe's biggest bank, BNP Paribas, playing the role of consolidator. BNP already owns significant operations in Italy and Germany and has billions of euros to spend from the well-timed sale of a US unit last year.
So far, though, BNP's executives have been far more timid. They've avoided any big deals and claim that they don't want to buy another bank.
Not to push the parallel between banks and luxury too far, but France solidified its position at the top of the luxury sector after what is now Kering took control of Italy's Gucci a couple of decades ago. For Macron, a real single market for financing, and the consolidation that would bring, could create similarly successful banking champions.
More from Bloomberg
Brussels Edition for a daily briefing on what matters most in the heart of the European Union
Five Things to Start Your Day for the most important business and markets news each morning
Money Distilled for John Stepek's daily newsletter on what market moves mean for your money
Deals for the latest news and analysis, from IPOs to startup investing, exclusively for Bloomberg subscribers
Citylab Daily for top stories and ideas, curated for your inbox by CityLab editors.
At least that's the implication from comments French President Emmanuel Macron made to Bloomberg today. In an interview at his annual Choose France investment conference, Macron called for consolidation in the European banking sector and indicated he'd even be open to seeing a major French bank like Societe Generale taken over by an EU rival in order to spur the deeper financial integration.
One model? Arnault, it seems. "Bernard Arnault consolidated this market very early," Macron said, explaining how France came to dominate the luxury and fashion industry. LVMH then consolidated the market in other parts of the world, Macron went on, "And thanks to the fact that he's listed in France, we consolidate a lot of value and value creation as well."
While Macron didn't explicitly say banks should copy LVMH, his use of mirrored language certainly suggests he sees them in a similar light.

It's a parallel that could appear attractive from a French perspective since following the logic would lead to Europe's biggest bank, BNP Paribas, playing the role of consolidator. BNP already owns significant operations in Italy and Germany and has billions of euros to spend from the well-timed sale of a US unit last year.
So far, though, BNP's executives have been far more timid. They've avoided any big deals and claim that they don't want to buy another bank.
Not to push the parallel between banks and luxury too far, but France solidified its position at the top of the luxury sector after what is now Kering took control of Italy's Gucci a couple of decades ago. For Macron, a real single market for financing, and the consolidation that would bring, could create similarly successful banking champions.
More from Bloomberg
Brussels Edition for a daily briefing on what matters most in the heart of the European Union
Five Things to Start Your Day for the most important business and markets news each morning
Money Distilled for John Stepek's daily newsletter on what market moves mean for your money
Deals for the latest news and analysis, from IPOs to startup investing, exclusively for Bloomberg subscribers
Citylab Daily for top stories and ideas, curated for your inbox by CityLab editors.

No comments