A decades-long, complicated ownership system of luxury fashion retailer Christian Dior has been simplified after LVMH moved to consolidate control of the brand.

The €12.1 billion (£10.2 billion) deal unites ownership of Dior with LVMH – the global luxury fashion and retail empire owned by France‘s richest person Bernard Arnault.

A 1960s-era deal meant LMVH had already owned the perfumes and beauty arms of Dior, but this latest deal folds operations of Christian Dior Couture, which makes the Lady Dior handbag, made-to-measure gowns and men‘s and women‘s ready-to-wear fashions, under one roof.

Arnault said that bringing the two arms of Dior under the same umbrella will ease its access to financing for stores and marketing as well as making it easier to move talent between Dior’s perfume and fashion arms.

Dior Couture also owns prime real estate, including stores in London, Paris and Tokyo.

“This is an operation that shows our confidence in the French economy as well as in LVMH going forward,” Arnault said at a press conference announcing the deal.

READ MORE: Louis Vuitton, Marc Jacobs, Bulgari parent company posts 15% sales growth

“It will allow us to increase the synergies that already exist between LVMH and Christian Dior Couture.”

LVMH, otherwise known as LVMH Moet Hennessy Louis Vuitton, is a business empire that owns Louis Vuitton, Marc Jacobs, Sephora, Givenchy, Fendi, Tag Heuer, Bulgari, Kenzo and various upmarket alcohol and cosmetics brands.

Christian Dior chief executive Sydney Toledano told reporters that the new consolidation deal would have little impact on the brand‘s eight production sites in France.

Other LVMH-owned brands have also maintained control of their factories.

“As with creativity and product development, I believe that the Dior touch has to remain distinct in production,” Toledano said.

The news comes amid a revival in sales and profits for the luxury retail sector, boosted by Asian markets as well as consumers taking advantage of the Brexit-hit pound.

Earlier this month, LVMH recorded a 15 per cent increase in revenue in the quarter, raking in €9.9 billion (£8.4 billion) – also represented an organic revenue growth was 13 per cent compared to the same period of 2016.

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