Italy rules out golden powers in future Armani stake sale

The Italian government cannot intervene in a future sale of a stake in the luxury fashion house Armani using its “golden powers,” even if a deal involved a foreign company, Italy’s industry minister told Reuters.

“Armani doesn’t fall within the scope of national security,” Adolfo Urso said on the sidelines of an event late on Tuesday when asked whether Rome could apply such measures. The so-called golden powers enable Italy’s government to block or impose conditions on foreign and domestic corporate acquisitions in strategic sectors, such as energy, telecommunications, and banking.

Urso noted that the late Giorgio Armani’s plans for the company he led for 50 years were clear and outlined in his will, indicating that current regulations do not allow government intervention.

In his will, Armani instructed that an initial 15% stake in the fashion house be sold within 18 months of his death and that an additional 30% to 55% stake be transferred to the same buyer or that the company seek a market listing.

The will gave priority to luxury conglomerate LVMH, beauty group L’Oreal and eyewear maker EssilorLuxottica, with which the fashion house maintains a commercial partnership.

Giorgio Armani, who built the brand into one of Italy’s most iconic fashion houses, died last month at the age of 91.