Europe’s richest man Bernard Arnault has bought personal shares in a rival to his luxury empire LVMH, in a move expected to fuel speculation over a possible takeover.
Mr Arnault, the chairman and chief executive of LVMH, is understood to have taken a small stake in Richemont, which owns Cartier.
The position, which was not available on public registers on Tuesday afternoon, was described by sources as a personal investment by the LVMH boss.
The Telegraph understands that the investment is part of a broader family-owned portfolio of investments by Mr Arnault rather than an early indication of a possible takeover bid by his LVMH business.
LVMH and Richemont declined to comment.
However, news of the investment, first reported by Bloomberg, is expected to spark fresh speculation over whether Mr Arnault would consider a swoop for Richemont, which has historically batted off takeover interest.
The Swiss company was previously approached by rival luxury firm Kering over a deal. However, Richemont founder and chairman Johann Rupert said in 2021 he had no intention to sell.
Despite that, Mr Arnualt earlier this year suggested he was interested in the luxury business, which also owns Van Cleef & Arpels.
When asked about whether LVMH would be interested in a deal for Richemont, he said: “I consider Rupert an exceptional leader and I have no desire to interfere with his strategy. I understand that he’s keen to remain independent.
“I think it’s very good and if he needs support to retain his independence, I will be there.”
The comments were seen by some as lighthearted, but by others as suggesting that LVMH would merge with Richemont if given the option.
Mr Arnault is known as the “wolf in cashmere” because of his appetite for ruthless dealmaking.
LVMH’s portfolio of brands includes Louis Vuitton and Dior, with US jewellery brand Tiffany being added to its stable in 2021 in a $15.8bn (£12.5bn) deal.
Analysts have suggested that Richemont could be a good fit for the LVMH business, with HSBC’s Erwan Rambourg saying earlier this year: “As LVMH looks to dominate luxury further, why wouldn’t it be interested? LVMH has the financial means and a strong, long-term record at managing brands.
“In jewellery, we estimate that a combined entity could hold the fourth-largest collection of high end brands.”
UBS analyst Zuzanna Pusz said the market would be watching closely for any signs of takeover interest by LVMH over the coming year.
She said: “Generally at LVMH, they try to run the business with an efficient use of their balance sheet. They make sure to have some minimum level of net debt and they do not want to go into a net cash position.
“On our estimates, they will be in a net cash position early next year so they will have the balance sheet firepower and that naturally leads to speculation that they will be on the lookout for something.”