French luxury goods conglomerate LVMH will soon buy the Christian Dior brand in totality for €12 billion (around Rs 83,911 crore), The Guardian reported on Tuesday. The deal will include the fashion house, its perfumes and other Dior products. The major stake holder of LVMH also controls 71% shares of Christian Dior. Bernard Arnault is the CEO of both companies.

The Arnault family will buy the remaining shares of Christian Dior for €12 billion, and then sell it to LVMH for €6.5 billion. LVMH was formed in 1987 after the merger of fashion house Louis Vuitton and champagne and cognac producer Moët Hennessy.

Billionaire Bernard Arnault, who is also the richest man in France, said the deal was an “important milestone” for LVMH. According to him, the purchase would lead to “the simplification of the structures, long requested by the market, and the strengthening of LVMH’s fashion and leather goods division thanks to the acquisition of Christian Dior couture”.

After the news was made public, the shares of LVMH went up more than 4% to €223.55 during early hours of trading on Tuesday. Christian Dior, founded in 1946, posted revenues of €2 billion and underlying earnings of €418 million in 2016. The brand has 198 stores across the world.