Editor’s Note
This analyst speculation highlights the ongoing consolidation dynamics within the luxury sector. Any potential acquisition of a brand like Cartier by LVMH would face significant regulatory and financial hurdles.
NEW YORK (Agefi-Dow Jones) — Cartier, the jeweler and subsidiary of Swiss group Richemont, appears to be an attractive target for French luxury giant LVMH, analysts at Baader Europe wrote in a note on Tuesday.
LVMH’s acquisition of American jeweler Tiffany increased the contribution of watches and jewelry to Bernard Arnault’s group’s revenue. However, less than a third of the brand’s products are in the high jewelry segment that drives the market, a segment where Cartier is the leader.
However, the capital structure of the Swiss group complicates any potential transaction, as it is designed to protect the control of the Rupert family, according to the analysts. The family holds 10.2% of the shares but 51% of the voting rights, which makes a takeover almost impossible, the intermediary points out.
Richemont’s stock gained 1%, to 120 Swiss francs, in Zurich, while LVMH rose 1%, to 610 euros, in Paris.
– Andrea Figuera, Dow Jones Newswires (French version and contribution by Jérôme Batteau)