- Bernard Arnault's Louis Vuitton Moet Hennessy group has bought Swiss luxury watchmaker, Tag Heuer, for £485 million just weeks after LVMH failed to win control of the Gucci fashion house.
The move is another step in the race by retailers to scoop up Europe's top luxury brands. Only days ago, Italian luxury goods group Prada bid £106 million for British shoemaker and retailer, Church.
LVMH already owns world-class brands such as Givenchy, Dom Perignon champagne and Christian Dior. Based in Paris, the group is, according to analysts, 'weak in jewellery' and 'virtually absent in the watches'. The company's purchase of Tag Heuer will allow it to expand into the luxury watch market and it is expected to extend the Tag Heuer brand into new fields.
The group has already been promised 38.8 per cent of Tag Heuer's shares and its bid caused the watch company's shares to rise 17 Swiss francs (168p) to SFr 215 yesterday.