Takeover Rumors Buzz As LVMH Head Acquires Richemont Shares

Tiffany, Cartier, Van Cleef & Arpels, and Boucheron . . . one of these things is not like the others lol. The answer is Tiffany because Tiffany is part of mega-conglomerate LVMH. The other three luxury jewelry brands fall under LVMH’s smaller rival Compagnie Financiere Richemont SA (Richemont), along with fashion brands like Chloe, Aläia, and Delvaux as well as timepiece lines Piaget, Vacheron Constantin, and Jaeger-LeCoultre, among others.

But what if these established purveyors of fine jewelry ended up together? The latest investment news regarding LVMH’s CEO and Chair (and one of the wealthiest men in the world), has people wondering. Arnault recently acquired a small ownership position in Richemont. Details about Arnault’s Richemont position are limited, but, according to reports, it is a small stake and part of a broader family-owned portfolio.

Image courtesy: @lollas_corner

The mere mention, however, of Arnault and LVMH investing in another luxury company starts the rumor mill churning about a possible takeover. Not that these speculations are completely new. Last year we heard chatter about LVMH possibly purchasing Cartier from Richemont. At the time, Richemont chairman Johann Rupert denied that Cartier was for sale. Rupert is the patriarch of the family that founded the company and over the years, he has been reluctant to cede control.

Read: Riches of Richemont: Exploring the Growth of Van Cleef & Arpels and Cartier

Image courtesy: @stylemaven_la

Earlier this year, when presenting LVMH financial results, Arnault had nothing but nice things to say, calling Cartier and VCA “two great brands” and praising Rupert’s management. Per Business of Fashion, he said:

“Let me finish on Richemont and Monsieur Rupert who I consider to be an exceptional leader . . .  I have no desire to disturb his strategy, I understand he wishes to remain independent and I think that’s very good. And if he needs support to maintain his independence, I will be there.”

What that exactly means remains an enigma for now. Is a small stock investment “support”, or just Arnault family business? In the meantime, let’s play “which would you rather”?  An independent Richemont managing Cartier and VCA? Or would you prefer to see these legendary jewelry brands with LVMH? Let us know.