LVMH, the parent company of Louis Vuitton, is reportedly looking to acquire Cartier, possibly adding the luxury brand to its jewelry lineup.
The billion-dollar company already owns some of the world’s biggest luxury labels aside from LV, such as Hermes, Givenchy, Tag Heuer, Hublot and Tiffany & Co.
According to a Washington Post report, there are rumors in the luxury industry of a potential takeover of Cartier-owner Cie Financiere Richemont SA by LVMH. However, all parties have so far declined to comment.
The acquisition of Cartier’s parent company would complement LVMH’s existing brands, such as Tiffany and Bulgari, making the French conglomerate a jewelry powerhouse. Richemont also owns the high jewelry brand Van Cleef & Arpels.
LVMH could reportedly afford the deal with its market capitalization standing at over €400 billion ($424.2 billion). Assuming a 30% premium, acquiring Richemont would cost about €110 billion, the Post reported.
Cartier was ranked 56th on Forbes‘ Most Valuable Brands list in 2020 with an estimated $12.2 billion valuation. The brand also has 300 boutiques worldwide showcasing its high-end jewelry and watches.
According to Forbes, the brand is extremely profitable for Richemont, and profits rebounded 16% in 2022 after a 20% fall in 2017 due to the luxury industry slump.
Meanwhile, LVMH is reportedly worth $329 billion. In 2022, the company recorded $75.9 billion in revenue, $142.5 billion in assets and $14.2 billion in profit, per another Forbes report.
A deal between LVMH and Richemont may face some competition constraints, according to the Post, since other luxury groups, such as Kering, are looking to get their hands on the Cartier owner.
Meanwhile, similar reports say that LVMH is also in talks with beauty brand Aesop, with a $2 billion bidding war reportedly ongoing, per the Guardian.
Bernard Arnault, founder and chief executive officer of LVMH, recently appointed his daughter Delphine to run Dior, its second-biggest brand.
Related Articles
American Dollar Exchange Rate
