Richemont considering Buccellati purchase
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

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

graph 0310 richemont

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.

Disclosure

Dominion holds Richemont in its Global Trends Luxury Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.