According to the blog from Schumpeter written by V.v.B., PPR, the French luxury conglomerate, bought Brioni, an Italian fashion brand on November 8th by paying €350m ($484m). Brioni makes decent suits, and even some of its suits are worn by Obama and Putin. PPR bought Brioni recently, because it tries to transform the company from a “luxury-cum-retail empire” into a “luxury group with a sports and lifestyle arm.” The deal seems like a win-win situation for both companies, but Italy’s minister of finance and economy, Giulio Tremonti, criticized French for its acquisitiveness.
Personally, the deal between PPR and Brioni might be good for both sides; however, the take over by companies from other counties could affect Italy’s economy indirectly, especially when Italy’s government is in danger of collapse. European countries are supposed to help each other based on reciprocity instead of market. Therefore, in this case, the term business ethics is involved in the process of trading between companies. PPR should consider Italy’s economic dilemma when it wants to buy Italian companies. Although PPR may earn a large amount of money from the take over, it is better to think a little bit more about another side before the final decision.
Blog: http://www.economist.com/blogs/schumpeter/2011/11/ppr-buys-brioni