Editor’s Note
Reports suggest LVMH Chairman Bernard Arnault has expressed interest in acquiring rival luxury group Richemont, home to brands like Cartier and Van Cleef & Arpels. While neither company has officially commented, such a move would significantly reshape the global luxury landscape. We will continue to monitor developments.
Bernard Arnault, Chairman of LVMH Moët Hennessy Louis Vuitton, has approached Johann Rupert, Chairman of Richemont, to express interest in an acquisition. Richemont is a Swiss luxury conglomerate owning brands such as Van Cleef & Arpels, Cartier, Piaget, IWC, Montblanc, and Vacheron Constantin.
According to industry sources on the 5th, LVMH is maneuvering for a potential merger and acquisition (M&A) of Richemont to enhance its business competitiveness.
It is known that Chairman Arnault is seriously considering acquiring Richemont. During LVMH’s earnings announcement last month, he praised competitor Richemont’s performance and stated, “If they want support, we are ready to join them.” The industry interprets this as Chairman Arnault conveying his intent to purchase a stake to Chairman Rupert.
This acquisition proposal is understood to stem from a high valuation of Van Cleef & Arpels’ business potential. The judgment is that acquiring Van Cleef & Arpels could create synergies with brands like Tiffany & Co. and Bulgari.
Van Cleef & Arpels is a core brand driving Richemont’s sales, wielding significant influence in the global high-end jewelry market. In the fourth quarter of last year, jewelry sales, including Van Cleef & Arpels, increased by 12% year-on-year. During this period, Richemont’s total sales (at constant exchange rates) reached 5.59 billion euros (approximately 8.0571 trillion won), a 4% increase from the same period last year.
However, the industry views the possibility of Chairman Arnault acquiring Richemont with skepticism.
The reason is that Chairman Rupert appears to have no intention of selling his stake. Chairman Rupert had previously rejected a proposal for a stake transaction from a global investment bank in 2022.
Moreover, Richemont’s sales have been growing, except for 2021. According to a survey by global market research firm Statista, Richemont’s sales have continued on a growth trajectory: 13.99 billion euros in 2019, 14.24 billion euros in 2020, 13.14 billion euros in 2021, 16.75 billion euros in 2022, and an estimated 19.95 billion euros in 2023.
