Proactive Investors - Talks of consolidation in the luxury sector are growing after it was revealed Bernard Arnault, the owner of Louis Vuitton Moet Hennessy, has built a stake in Cartier owner Richemont (LON:0QMU).
Europe's richest man is believed to have purchased a stake too small to be disclosed in public records and is a personal investment, reports from the Financial Times revealed.
Swiss-based Richemont has been rumoured as a takeover target for luxury companies, especially as it readies for a succession challenge with its owner and chair Johann Rupert set to retire.
In April, LVMH (EPA:LVMH) reported a soft start to 2024, let down by jewellery, spirits and champagne, though not as bad a quarter as many investors had expected.
French-listed LVMH kept unchanged in trading today, while Richemont, trading in Switzerland, dropped close to 1%.
Total organic sales of €20.7 billion were up 3% on a year ago, in line with consensus analyst forecasts.
Shares in London-listed Burberry rose 1%.