Thursday 5 December 2019 3:41 pm

Moncler shares jump on reports of Kering takeover bid

Shares in high-end coat retailer Moncler jumped this afternoon following reports that Gucci-owner Kering is mulling a takeover bid, despite Moncler boss Remo Ruffini’s instance that there is no “concrete” deal in the works.

The luxury group, which also owns Yves Saint Laurent, has reportedly held early-stage talks with Moncler about a potential deal, which sent the ski jacket maker’s shares up 12 per cent earlier this afternoon. 

Read more: Tiffany & Co earnings dive as Hong Kong protests hurt sales

However,  Ruffini, Moncler’s chief executive and top shareholder, said there was no “concrete hypothesis under consideration”. 

Ruffini said he “maintains contacts and interacts with with investors and other sector participants, including the Kering group, in order to explore strategic potential opportunities to further promote the successful development of Moncler”. 

A deal between the two companies, which was reported by Bloomberg, would mark further consolidation in the luxury consumer sector.

Louis Vuitton owner LVMH recently announced it will buy iconic jewellery brand Tiffany & Co for $16.2bn, one of the biggest deals in the industry. 

David Madden, market analyst at CMC Markets, said: “There seems to be M&A activity in the luxury sector recently seeing as LVMH agreed to acquire Tiffany.

Read more: LVMH strikes deal for Tiffany & Co

“It is possible the latter deal set the wheels in motion for the Moncler-Kering potential tie-up. 

“High-end brands usually outperform whenever there is a cooling in the wider retail sector as the super-rich can usually afford to keep spending.”