LVMH owner Bernard Arnault buys stake in rival Richemont

Bernard Arnault, the billionaire owner of French luxury giant LVMH, is investing in smaller luxury rival Richemont. Rumours have been circulating for months that Arnault wants to acquire the Swiss holding company above Cartier and Delvaux.

Acquisition upcoming?

Arnault is personally taking a stake in the Swiss group, despite a rumour that has been circulating since February – that LVMH as a group would like to acquire Richemont. Both Arnault himself and the LVMH management are said to be big fans of Cartier, which they hope will complement their youngest subsidiary Tiffany & Co. LVMH is currently valued at 390 billion euros, Richemont at 74 billion.

Richemont is currently owned by South African billionaire Johan Rupert, who recently appointed a CEO for the first time in a decade: Frenchman Nicolas Bos, previously CEO of subsidiary brand Van Cleef & Arpels, has put at the helm earlier this month. The appointment came at the same time as the announcement of record figures in 2023, even though growth is slowing down due to weaker performance in China.

The size of the stake Arnault is taking in Richemont is not disclosed, but that means it must be less than 3 %, otherwise there would be reporting requirements.