Bernard Arnault’s LVMH Eyes South African billionaire Johann Rupert’s Richemont 

Bernard Arnault’s LVMH Moët Hennessy Louis Vuitton, a leading luxury goods conglomerate, has cast its eye on Switzerland-based luxury goods holding company, Richemont.

This comes as reports say the leading luxury goods conglomerate is considering the acquisition of Richemont, led by South African billionaire, Johann Rupert.

The development follows Richemont’s impressive collection of premium brands such as Chloe, Dunhill, Alaa, Cartier, and Delvaux. 

These collections have helped Richemont secure its place as the fourth-largest luxury company globally, with a market capitalization of almost $79 billion.

How possible is the acquisition?

Insiders of the conglomerate suggest that LVMH is actively seeking to expand its jewelry segment by acquiring Cartier, a luxury jewelry brand owned by Richemont.

However, the acquisition may have slim chances as the South African billionaire, Johann Rupert, who leads Richemont, has shown resistance to potential takeovers.

This is evident in the steps the South African mogul has taken to secure his position in the company. One such includes, appointing his son Anton to the board to ensure a long-term strategic vision for the group. 

Richemont’s recent activities 

Richemont’s recent trading update for the third quarter of its fiscal year 2023 contained an 18 per cent increase in sales at actual exchange rates for the nine months ending December 31, 2022.

Also, the group’s sales have surpassed $16.3 billion, up from $13.9 billion during the same period last year.

The recorded increase in sales is closely linked to the sales surge in Japan. Japan’s sales soared from less than $929 million in 2022 to almost $1.4 billion. 

More so, the better-than-expected sales recorded in Europe, despite geopolitical tensions sparked by the Ukraine war can also be the reason for the sales surge. 

Newsmen gathered that Richemont’s largest market situated in Asia-Pacific experienced a decline due to the COVID-19 pandemic.