Arnault's World: LVMH’s interest in Richemont
Rumours in the fashion business world suggest that LVMH owner and CEO Bernard Arnault may be looking to purchase rival holding company Richemont.
Words: Charlie Bentley
Two prime movers in fashion, LVMH and Richemont, have recently made headlines due to LVMH founder and CEO Bernard Arnault. The multi-billionaire has taken a personal equity stake in Richemont. The amount of shares that Arnault has acquired is confidential, but the news of his purchase raised Richemont’s market value by a colossal 4 percent. The LVMH CEO had previously stated publicly his admiration for Richemont and the quality of their maisons, particularly in their ability to turn small businesses into success stories, like the recent acquisition of Italian jeweller Vhernier.
For the last few years, speculation has been growing over a potential purchase of Richemont by LVMH. LVMH is already the biggest kid on the block by far. And by big, we mean Europe’s largest market cap, standing at $382.88 Bn (as of July 2024). The consultancy firm Asterès reported that this luxury house was responsible for four percent of France’s exports, more than all of France’s wine combined. When looking at the make-up of LVMH, this fact begins to make more sense: Louis Vuitton, Dior, Moet, Hennessy, Givenchy, Marc Jacobs, Tiffany & Co., and Dom Perignon are just a few of the 75 maisons.
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