Qatari fund set to add Balmain to its fashion portfolio

Qatar's Mayhoola fund is looking to acquire the French fashion house Balmain for $522 million, according to Reuters .

Negotiations have been underway between Qatar and Balmain investors for a while now. The terms of the deal were not disclosed immediately, however those familiar with the bidding process valued Balmain at 500 million euros, according to the Financial Times .

“After completing this transaction Mayhoola for Investments will hold 100% of Balmain’s capital,” said the merger and acquisitions company Bucephale Finance, according to The Guardian .

Under the terms of agreement, Mayhoola agreed to finance Balmain's international expansion as well as the development of an accessories line, according to Reuters, although both parties declined to comment.

A person close to the deal believes that "Mayhoola's plan is to combine Balmain and Valentino under one umbrella and eventually list the group," according to the Financial Times.

Considering the fund, which is linked to the Qatari royal family, also owns the Italian Valentino, this deal is a no brainer.

Back in 2015, the autumn collection of #Balmainxhm, a collaboration between Balmain and H&M, launched  in Lebanon. People went crazy over the launch, queuing up outside H&M as early as 7 a.m.