After reporting a year of record-breaking profit revenue, rumors have begun to circulate that French luxury conglomerate Louis Vuitton Moët Hennessy (LVMH) is considering a takeover of rival Richemont.
LVMH recently reached a market capitalization of €400 billion ($AU623.93 billion) for the first time and is the 13th most valuable company in the world, overseeing 75 brands including Tiffany & Co, TAG Heuer, Bulgari, Chaumet, Zenith, and Hublot.
Conversely, Richemont recently released a third-quarter report headlined by struggling sales inChina. Based in Switzerland, Richemont owns luxury brands such as Baume & Mercier, Buccellati, Cartier, Montblanc, Piaget, Vacheron Constantin, and Van Cleef & Arpels.
This week, Swiss newspaper Finance and Economics reported that LVMH founder Bernard Arnault is contemplating a takeover of Richemont.
“It’s still a little more than a whisper. But in the luxury industry, there is whispered talk that Bernard Arnault, founder and CEO of French luxury goods giant LVMH, wants to takeover Swiss competitor Richemont. More specifically, he is said to be targeting Richemont’s industry-leading jewelry brand, Cartier,” writes Simone Stern.
Cartier is reportedly seen as a strong complement to LVMH’s recently acquired Tiffany & Co.
Per Richemont’s most recent financials, the group’s jewelry brands increased sales by 8 percent in the third quarter, with the strong performance of Cartier, Buccellati, and Van Cleef & Arpels noted.
More reading
Sales woes for Richemont in China
Richemont cautiously heading into 2023
Richemont sees all-time high annual sales performance
Richemont celebrates strong opening quarter
Record-breaking revenue for LVMH
Leadership, management shuffle at LVMH and Tiffany & Co.
Tiffany & Co. problems continue: French-US rivalry causes confusion
LVMH jewelery sales increase by 23 per cent to €7.58 billion
