Del Vecchio’s legacy battle is headed for a billion-dollar deal

Europe’s biggest companies often look stable from the outside. Inside the family boardroom, they can be anything but.

Now the heirs of Luxottica founder Leonardo Del Vecchio appear to be heading for a deal that could resolve a long-running succession battle and strengthen power over the ownership company behind Ray-Ban maker EssilorLuxottica.

Leonardo Maria Del Vecchio, one of six children of the late billionaire Leonardo Del Vecchio, says he is close to a deal to buy his two sisters from the family’s holding company, Delphine.

Delphine, based in Luxembourg, sits at the center of Del Vecchio’s fortunes. It is the largest shareholder in eyewear giant EssilorLuxottica and has stakes in companies including Insurance Generali and Banca Monte di Paschi di Siena.

Leonardo Maria told the Financial Times that talks are close to agreeing a price that would allow him to buy the shares of siblings Luca and Paola Del Vecchio. If completed, his stake in Delphine will rise to approximately 37.5%, making him the largest shareholder in a company with approximately €56 billion (about $65 billion) in net assets.

The conflict began in 2022, when Leonardo del Vecchio died and divided the Delphine estate between his six children and his widow. The arrangement sparked years of controversy over governance and dividend policy.

These tensions have practical consequences. Dividend distributions are limited and strategic decisions are delayed as heirs work through legal disputes.

Leonardo Maria said the deal would likely be structured as a leveraged buyout backed by banks. The loan will be repaid through dividends from Dolphin’s reserves. He pointed to around €7 billion in reserves that could support extraordinary dividends followed by annual payouts of more than €1 billion.

Meanwhile, other pressures remain. Leonardo Maria also challenged the transfer of her 25% share by his mother Nicoletta Zampello to his half-brother Rocco Basilico.

At first glance, this looks like just another billionaire inheritance dispute. In fact, it is a battle for control of one of Europe’s most powerful corporate holding structures.

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Delphine is the strategic nerve center of the Del Vecchio empire. It controls the largest stake in EssilorLuxottica, a company valued at more than $100 billion, and holds influential positions in banking and insurance companies. When governance within a holding company ceases, the spillover effects reach beyond the family.

Since the founder’s death, Delphin has been stuck in a sort of shareholder gridlock. The estate is divided among eight heirs and the company’s bylaws require broad consensus for key decisions. This structure has made it difficult to approve large interest or strategic moves.

The purchase, which raises Leonardo Maria’s stake to 37.5%, will not give him full control. But it will significantly simplify the ownership structure and reduce the risk that internal conflicts will freeze the decision.

There is also a race angle. Leonardo Maria, 30, is the only family member with an executive role at EssilorLuxottica, where he serves as chief strategy officer. He has aligned himself closely with Francesco Malleri, a longtime lieutenant of the founder who now runs both EssilorLuxottica and Delfin.

This is important because EssilorLuxottica has grown since the founder’s death, expanding into medical technology and smart glasses through partnerships like the collaboration with Meta. The group’s market value now exceeds $100 billion.

In this sense, the war of succession is not only about the division of wealth. It is about that that ultimately supports the strategy that shapes the future of Europe’s most successful consumer company.

Now there are two ways.

The first is a negotiated solution. If Leonardo Maria and his brothers agree on a price, Delfin’s ownership structure could stabilize quickly.

The second way is through the courts. Luca and Paola Del Vecchio have already asked a Luxembourg court to determine the price of their shares, which could force a deal if negotiations fail.

However, the outcome will determine who ultimately leads the Del Vecchio empire. For a family fortune built on sunglasses, the stakes are somewhat small.

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