Shares in luxury products group Kering jumped after it confirmed speculation that Renault Chief Executive Officer (CEO) Luca de Meo will be its new CEO.
Kering (EPA: KER) shares rose € 20.30 (11.76%) to close at € 192.88 on Monday (Tuesday AEST), capitalising the French company at € 24.11 billion.
The company said the appointment, which was initiated by Chairman and CEO Francois-Henri Pinault, marked a decisive step in the evolution of its governance and strengthened the group's leadership as it entered a new phase of its development.
Pinault said de Meo’s experience at the helm of an international listed group, sharp understanding of its brands, and sense of a strong and respectful corporate culture convinced him that the Italian was the person to bring a new vision and steer the company.
"After twenty years of transforming Kering into a major global luxury player, the Group is ready for a new stage in its development,” Pinault said in a media release.
“It is with complete confidence that I am handing over the leadership of Kering and our teams to Luca.
“I will of course be at his side to accompany him in this new phase, as Chairman of the Board of Kering.”
De Meo said he was approaching this new professional challenge with enthusiasm, eagerness, and confidence.
“I am convinced that together we will continue to make Kering an essential player in the luxury industry,” he said.
De Meo, who has spent his career in the automotive industry, will be the first outsider to run the company controlled by the French billionaire Pinault family and will start in the role on 15 September.
Kering has struggled to revive its formerly fast growing Italian fashion label Gucci, but in a call with analysts Pinault denied that the new hiring was to address a crisis.
"I am not recruiting a firefighter," he was quoted in a Reuters story as saying.
