French luxury powerhouse LVMH is rumoured to consider acquiring its rival Richemont – or at least its Cartier luxury jewellery business to its portfolio, according to multiple industry reports. 

Swiss paper Finanz und Wirtschaft, the first to reveal the news, said the world’s richest man Bernard Arnault is looking into acquiring Cartier, which would complement the house’s Tiffany and Bulgari brands. The source described to the publication “whispers” in the industry of the potential deal by the French luxury conglomerate. 

Bloomberg has subsequently reported that “all parties have so far declined to comment”.

The family of Johann Rupert, the founder of Richemont, has owned a controlling stake in the group since 1988.

Swedish luxury group Richemont’s brand portfolio includes Cartier, Montblanc, Piaget, and Van Cleef & Arpels. The group sold a controlling stake in loss-making online fashion retailer Yoox Net-a-Porter to its rival Farfetch and Middle East investment firm Symphony Global last year. 

According to Bloomberg LVMH has a market capitalisation of more than US$424.2 billion so it could afford to buy Richemont. “Assuming a 30 per cent premium, acquiring Richemont would cost about US$116 billion.”

Richemont’s sales during its latest quarter plunged by nearly a quarter in Mainland China as customers stayed away from shops and a lack of staff led to temporary closures and shorter opening hours at its luxury boutiques, the Geneva-based company said earlier this year. 

Meanwhile, sales at the world’s largest luxury group reached US$24.65 billion during the fourth quarter of last year, up 9 per cent as shoppers in Europe and the US splurged amid the crucial holiday season.