French luxury heavyweight LVMH is investing in Moncler in a transaction that gives LVMH a seat on the board of the Italian fashion company, best known for its pricey puffer jackets.

By Mimosa Spencer and Anna Pruchnicka (Reuters) -Shares in Moncler rose sharply on Friday after French rival LVMH invested in the Italian outerwear specialist, fuelling speculation about the long-term intentions of the owner of Louis Vuitton and Moet & Chandon champagne.

Diego Della Valle, chief executive of Tod’s, struck a deal with LVMH to take a minority stake in the company in 2021. It was delisted from the Milan stock exchange this year in a deal with LVMH-backed private equity firm L Catterton. LVMH owns more than 75 brands, including Louis Vuitton and Dior.