The Olympics are about competition, yes, but at their best, they’re also about mutual respect between peoples and countries.
The same just might go for luxury conglomerates.
When Bernard Arnault, whose LVMH Moët Hennessy Louis Vuitton is premium partner for the Paris Summer Games, sat down with CNBC’s Andrew Ross Sorkin ahead of the Opening Ceremony, he was thinking more about mutual respect.
Asked about an earlier Bloomberg report that Arnault had taken a stake in competitor Compagnie Financière Richemont, the luxury titan acknowledged the investment, but tossed cold water on the idea that it’s a prelude to a mega buyout.
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“I know, well the owner, Mr. Johann Rupert of Richemont,” Arnault said. “We have a good relationship and I told him that I will never do anything against him. That’s clear. And if I bought some shares, it’s just my portfolio manager put some shares.
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“But it’s a very minor stake and I am very happy,” Arnault said. “He has done something fantastic with Richemont, with Cartier, with Van Cleef, and I think he’s independent. He wants to stay independent. And I agree completely on that.”
Arnault grew his luxury empire by snapping up competitors — and he doesn’t seem to have changed his tack, having bought Tiffany & Co. for nearly $16 billion in 2021. But even for LVMH, with a market capitalization of 331 billion euros, Richemont would be a big buy as it has a market cap of 79 billion Swiss francs, or about 82 billion euros.
For now, it seems the luxury giant status quo reigns, although Arnault is always looking higher.
During the interview, Arnault said he’d be sitting with “my friend” Elon Musk that day at an event with the French President Emmanuel Macron.
“I admire very much what he’s doing because I think he’s a genius,” Arnault said, noting his successes with both Tesla and SpaceX.
Arnault said there had also been some discussions about two of the billionaires’ companies working together.
“Maybe we’ll see a Louis Vuitton rocket, a SpaceX, Louis Vuitton collab,” Arnault said.
“We have to think [about it],” Arnault said, noting the brand could help kit out the inside of a rocket. “He did not say no.”
But if Arnault is looking to launch Louis Vuitton into orbit, he’s less certain about going himself.
“I’m afraid he will ask me to go with him in the rocket,” Arnault confessed.
Asked if he would go, Arnault said with a laugh, “I’m not sure.”