French holding company, LVMH announced in a statement on Monday that the group will take control of renowned Italian jeweler, Bulgari S.p.A.

A major player in haute joillaire creations, Bulgari's BOD has also unanimously approved the project of contributing to LVMH the Family's majority shareholding in Bulgari S.p.A.

The share transfer process will involve exchange of 152.5 million Bulgari shares currently held by the Bulgari Family for 16.5 million shares by LVMH. Bulgari will thus become the second largest family shareholder of the LVMH Group.

We found in Bernard Arnault and the Group he has built all the elements that are required to guarantee the long term future of Bulgari: the ability to gather into one powerful organization different brands that can grow and develop while preserving both their identity and originality; a culture completely identical to ours.., stated Paolo Bulgari, Chairman of Bulgari S.p.A. and Nicola Bulgari, Vice Chairman of Bulgari S.p.A.

However, both Paolo and Nicola will remain Chairman and Vice Chairman of the Bulgari S.p.A. Board of Directors.

The luxe brand will also be entitled to appoint two representatives to the LVMH Board of Directors and Francesco Trapani, CEO of Bulgari S.p.A., will join the Executive Committee of LVMH and will assume in the second half of 2011 the management of the LVMH enlarged Watches and Jewelry activities.