Bernard Arnault has triggered takeover speculation as he has bought a stake in Richemont (CHF), which runs the Cartier brand and is a rival to his LVMH (Moët Hennessy Louis Vuitton) stable of brands.
Europe’s Richest Man Triggers Richemont Takeover Speculation
Arnault is the richest man in Europe, with the title of chief executive and chairman of LVMH. His new stake in CHF is said to be relatively small and so far has been classed as a personal investment. Despite this, the news has caused some analysts to suggest that he could be planning a takeover bid.
Switzerland-based Richemont has traditionally sought to remain independent. In 2021, it fought off an approach from Kering (KER). At that time, the brand’s founder and current chairman, Johann Rupert, pointed out that he didn’t plan to sell.
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Earlier in 2024, Arnault mentioned being interested in luxury businesses such as Arpels and Van Cleef that are under the CHF umbrella. He was asked about LVMH making a deal to buy CHF and replied:
I consider Rupert an exceptional leader and I have no desire to interfere with his strategy. I understand that he’s keen to remain independent.
The LVMH chairman even went on to say that he would be there to support Rupert in retaining the independence of his company, if needed. These comments drew diverse reactions, with some analysts suggesting that he was hinting that a merger between LVMH and Richemont could occur at some point in the future.
One of the most recent big deals completed by Arnault came in 2021 when LVMH bought the US jewellery brand Tiffany in a deal worth $15.8bn.
