Frasers Group acquires majority control of Hugo Boss

The British retail group Frasers Group has successfully taken control of the German fashion brand Hugo Boss by increasing its stake to 50.08 percent. The acquisition was finalized on October 23 through the purchase of 198,666 additional shares for approximately 7.6 million euros, at a price of 38.41 euros per share.

This move follows a strategic effort initiated earlier this year, including a previous takeover bid and the replacement of the Hugo Boss chairman with Frasers CEO Michael Murray. As a result of crossing the 50 percent threshold, Hugo Boss will become a subsidiary of Frasers, and its earnings, assets, and liabilities will be consolidated into the British group's financial statements.

Frasers Group, which is majority-owned by billionaire Mike Ashley and owns brands such as Sports Direct and Flannels, may gain further influence through put options that could grant access to an additional 21.87 percent of shares. While Frasers has significantly increased its influence, a spokesperson for Hugo Boss stated that the company has noted the increase in holdings and that little will change regarding daily operations.