Luca de Meo's Shift from Renault to Revitalize Kering
Renault CEO Luca de Meo is set to join Kering, causing stock shifts with a 10% rise for Kering and 7% drop for Renault. De Meo's departure marks a significant transition amidst strategic carmaker plans, as Kering bets on his turnaround skills to overcome debt challenges and reinvigorate Gucci.
Renault's shares plummeted on Monday, sharply contrasting with Kering's surge, as both companies reacted to news that Luca de Meo, Renault's CEO, would soon take the helm of the French luxury goods giant. The announcement, made late Sunday, sparked a near 10% rise in Kering's stock, marking its largest single-day leap since March 2020.
Conversely, Renault's stocks tumbled by approximately 7%, the steepest drop since last July, following the news of de Meo's imminent exit. De Meo, known for reshaping Renault's strategic path and revitalizing its partnership with Nissan, will replace Kering CEO Francois-Henri Pinault, who will stay on as chairman, according to sources confirming reports in Le Figaro.
While Kering remained silent on the transition, analysts like those from Kepler Cheuvreux suggest that despite de Meo's non-luxury background, his proven expertise in transformation and marketing could be the antidote Kering needs to manage its significant debt and rejuvenate Gucci, its flagship brand.
(With inputs from agencies.)
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