Richemont considering Buccellati purchase
According to an Italian newspaper report on Monday, luxury conglomerate Richemont, best known as the owner of jewellery brand Cartier, is considering buying Italian jeweller Buccellati. The brand’s current owner, Chinese group Gansu Gangtai, bought it in 2017, when the deal valued it at $313 million. Now, apparently, Bank of America Merrill Lynch is at work on another sale, which has drawn Richemont’s interest.
Richemont’s share price has appreciated by 2% over the last five days
SOURCE: Yahoo Finance
Buccellati, which is a Milanese brand founded in 1909, is a high-end jeweller known for its beautiful bridal pieces. The company’s website describes it in the following way: “a timeless design aesthetic and refined craftsmanship have always been at the center of the Buccellati universe. The house’s unrelenting desire to create objects of rare beauty has established its distinct, inimitable style, and has set it far apart from the rest of its competitors.” It describes itself as evoking “the glamour of the past” while still “remaining relevant in the modern world.”
Richemont has declined to comment as to whether the reports are true or not. However, the luxury giant has previously declared an interest in Buccellati, according to Reuters, when it “was in exclusive talks to buy a controlling stake […] from Italian private equity firm Clessida.”
Gansu Gangtai had originally planned to invest around 200 million euro to develop Buccellati, but the acquiaition has “run into difficulties due to restrictions and investments abroad introduced by the Chinese government,” according to Corriere della Sera’s Monday supplement L’Economia.
Dominion holds Richemont in its Global Trends Luxury Fund.
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