MajorsJan 08, 2021
Tiffany CEO, Artistic Director Out As LVMH Acquisition Closes MajorsMar 23, 2021
Report: Richemont Declines Kering’s Merger Proposition
A deal between the two luxury titans would spell trouble for LVMH.
Richemont headquarters in Geneva, designed by architect Jean Nouvel. The luxury giant was reportedly approached by Kering about an acquisition but declined the offer. (Image courtesy of Richemont)
New York—As the dust settles from the Tiffany & Co.-LVMH merger, another big-name luxury acquisition may be in the cards.
Fashion blog Miss Tweed reported Sunday that Kering CEO François-Henri Pinault made an “informal offer” to Richemont chairman and controlling shareholder Johann Rupert in January.
The offer was rejected and not brought to Richemont’s board, said Miss Tweed, citing “informed sources.”
“Richemont declines to comment on media or market speculation,” a spokesperson said in a statement to National Jeweler.
Kering declined to comment on the reports.
Rumors of a possible merger between the two luxury giants have been swirling for some time, but neither party has officially expressed interest.
Related stories will be right here …
Pinault told reporters in February that while Kering was in a position to explore potential mergers and acquisitions, the company’s main focus was on organic growth.
When Pinault was asked to address the Richemont rumors specifically, he said, “It's a group that we know well, it's one of our partners that gave us a license for their eyewear so we are in regular contact. But it's a group that is controlled by a family, as is Kering, and there is nothing else on this matter."
In an analyst note, UBS said a deal between Kering and Richemont “would make sense from a strategic perspective” and could spell trouble for LVMH and challenge its standing in the luxury market.
“Combining the two mega brands of the soft and hard luxury industry, Gucci and Cartier, could address the perceived higher fashion risk of Kering and the perception of mismanagement of Richemont’s smaller brands in its portfolio,” it said.
Analysts noted that a deal would require the Rupert family behind Richemont to relinquish control and said this is “likely to be the key obstacle in any negotiations.”
More on Majors
The Latest
WatchesApr 14, 2021
Rolex Rolls Out Its New Watches for 2021The new Oyster Perpetual models include palm leaf dials on the Datejust 36 and a Daytona that’s out of this world, literally.
FinancialsApr 14, 2021
LVMH Sees Jewelry, Watch Sales Double in Q1This is the first fiscal quarter that includes the recently acquired Tiffany & Co.
Events & AwardsApr 14, 2021
Centurion, CBG Jewelry Trade Shows Will Head to the Desert This Spring They’re slated for May in Phoenix and June in Las Vegas, respectively.
Brought to you by
4 Reasons You Need This Program for Mother’s DayLearn how to increase customer loyalty and revenue by making JM™ Care Plan a cornerstone of your business plan.
Events & AwardsApr 14, 2021
AGS Announces Upcoming Conclave LocationsHere’s where the event will be in 2022 and 2023.
Weekly QuizApr 08, 2021
This Week's QuizTest your knowledge of jewelry news from the week of April 5-9, 2021.
WatchesApr 14, 2021
Net-a-Porter, Mr Porter Give Watch Lovers Exclusive Access to Watches and WondersFor the second year, the e-tailer offered its customers “first-to-market” dibs on the latest timepieces.
CrimeApr 13, 2021
2 Men Plead Guilty in Murder of Texas JewelerThe men, one of whom is the late Theodore Shaughnessy’s son, both received 35-year prison sentences.
Brought to you by
Evaluating Your Inventory For Success in 2021 After months of pandemic-driven social distancing, restrictions and lock-downs, consumers will be excited to visit your store. Now is the time to ensure you have the right inventory on-hand to capitalize on that excitement!
FinancialsApr 13, 2021
Signet Ups Fiscal Guidance Following Strong Q1The jewelry giant posted stronger-than-expected conversion rates and higher average ticket values in the first quarter.
