Key Points:
- Bernard Arnault has acquired an undisclosed stake in Swiss luxury goods group Richemont, sparking takeover speculation.
- Richemont, controlled by Johann Rupert, boasts a market capitalization of $86 billion and owns brands like Cartier and Chloé.
- Arnault, supporting Richemont’s independence, stated he respects Rupert’s leadership and has no desire to interfere with his strategy.
Europe’s richest person, Bernard Arnault, chairman and CEO of LVMH Moët Hennessy Louis Vuitton, has acquired an undisclosed stake in Richemont, the Swiss luxury goods group controlled by Johann Rupert, South Africa’s richest person.
The size of Arnault’s stake, which isn’t publicly disclosed, has ignited speculation about a potential takeover bid. Richemont, led by Rupert, boasts a market capitalization of $86 billion and houses prestigious brands like Cartier, Chloé, and Van Cleef & Arpels. It recently bolstered its portfolio with the acquisition of Italian jeweler Vhernier S.p.A.
Arnault supports Richemont’s independence
The latest acquisition by Bernard Arnault comes after reports last year suggested LVMH was eyeing Richemont. However, Johann Rupert, who derives a $9.5-billion fortune from his stake in Richemont has expressed a desire to maintain the company’s independence.
Arnault, the world’s third-richest person with a $205 billion fortune, acknowledged this in a statement, saying, “I consider Johann Rupert an exceptional leader and have no desire to interfere with his strategy. I understand that he’s keen to remain independent, I think it’s very good and if he needs support to retain his independence, I will be there.”
Bernard Arnault’s LVMH targets Richemont
Under Arnault’s leadership, LVMH has become the world’s largest luxury conglomerate, with a $393 billion market cap. Its stable includes Louis Vuitton, Dior, and Tiffany & Co., acquired in 2021 for $15.8 billion.
Analysts see Richemont as a potential strategic fit for LVMH, given its financial strength and long track record of brand management, as the French giant seeks further dominance in the luxury sector.
Richemont achieves record sales
Richemont, under Johann Rupert’s guidance, capped off a strong fiscal 2024 with record sales exceeding $20 billion. Gross profit also rose to €14.04 billion ($15.22 billion) from €13.72 billion ($14.88 billion) in 2023.
Despite macroeconomic and geopolitical challenges, sales climbed to €20.6 billion ($22.4 billion) from €19.95 billion ($21.67 billion) the prior year, representing an 8 percent increase at constant exchange rates and a 3 percent rise at actual rates.