Richemont in Talks to Buy Buccellati from Chinese Owner
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Swiss luxury holding firm Richemont is in talks to acquire jewellery manufacturer Buccellati from Chinese holding company Gansu Gangtai.
The Chinese company took an 85 per cent shareholding in the Italian company a year ago for US$226 million, but the brand has performed poorly during the first half of this year. Gansu Gangtai’s initial plans to invest further in the brand have been scuttled by new restrictions in Chinese foreign investment and reported management difficulties.
The company is currently valued at $313 million under the proposed deal, in which a Qatari investor, Mayhoola, has also expressed interest.
Buccellati turns 100 next year and is known for its ornate, lush jewellery designs and bejewelled, golden iPad covers.
It operates physical stores in Shanghai and Beijing, as well as retailing online on JD.com.
Questions & Answers
Q.Why is Gansu Gangtai looking to sell Buccellati so soon after acquiring it?
Why is Gansu Gangtai looking to sell Buccellati so soon after acquiring it?
Gansu Gangtai's plans to invest further in Buccellati were reportedly hindered by new restrictions on Chinese foreign investment. They also faced management difficulties, which contributed to the brand's poor performance this year.
Q.How much did Gansu Gangtai pay for Buccellati a year ago, and what is its current valuation?
How much did Gansu Gangtai pay for Buccellati a year ago, and what is its current valuation?
Gansu Gangtai acquired an 85 per cent shareholding in Buccellati for US$226 million a year ago. Under the proposed deal, the company is currently valued at $313 million.
Q.What kind of products does Buccellati sell and where does it operate?
What kind of products does Buccellati sell and where does it operate?
Buccellati is known for its ornate, lush jewellery designs and bejewelled, golden iPad covers. It has physical stores in Shanghai and Beijing, and sells online via JD.com.
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