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(Sharecast News) - Shares in Kering surged on Monday on the back of speculation that Renault boss Luca de Meo is set to join the French luxury giant as its new chief executive.
Kering's share price was up 10% at 189.90 by 1123 in Paris, while Renault tanked 6% to 40.47.
While the appointment has not been confirmed by either company, Renault announced in a statement to shareholders that De Meo would be leaving the company after five years to "pursue new challenges outside the automotive sector".
He was praised for leading the "turnaround and transformation" of Renault since his onset of the Covid pandemic.
"We have a strong team and an agile organisation. We also have a strategic plan ready for the next generation of products," De Meo said.
"That is why I have decided it is time for me to hand over the baton. I am leaving a transformed company, poised for the future, to apply my experience to other sectors and embark on new adventures."
French newspaper Le Figaro reported the Kering will be De Meo's new home, with the Gucci owner reportedly set to split the dual role of chairman-CEO currently held by founding family member Francois-Henri Pinault for the past two decades.
According to broker Bernstein, "more experience and gravitas in senior management" has been sought at the luxury fashion conglomerate.
"Brand management and marketing are [De Meo's] forte, which dovetails with what the luxury industry does - for which he seems passionate," Bernstein said in a research note.
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