Watches Of Switzerland decreases 26% after Rolex-Bucherer agreement

August 28, 2023: On Friday, Watches of Switzerland decreases 26% after Rolex-Bucherer agreement.

Rolex said the acquisition for an unknown sum observed the decision of Bucherer proprietor Jorg Bucherer, the grandson of founder Carl Bucherer, to market the business without any direct children to take the reins.

“This move reflects the Geneva-based brand’s desire to perpetuate the success of Bucherer and preserve the close partnership ties that have linked both companies since 1924,” Rolex stated.

“The Rolex group is convinced that this acquisition is the best solution not only for its brands but also for all the watch and jewelry partner brands, as well as for all the employees of the Bucherer group.”

Swiss retailer Bucherer has more than 100 stores worldwide and has closely partnered with compatriot manufacturer Rolex since 1924. The deal gives Rolex a presence in consumer sales for the first time.

Bucherer will retain its name and brand, and its management team will remain unchanged, Rolex confirmed, with its integration into the Rolex business set to complete once competition regulators approve the takeover.

In a subsequent statement Friday, Watches of Switzerland attempted to soothe apparent market concerns that Bucherer, the world’s largest luxury watch retailer, will seize more market share through its tie-up with the iconic brand.

Watches of Switzerland insisted the acquisition was solely about succession planning for Bucherer and that Rolex breaking with its modus operandi of acting solely as a manufacturer is not making a “strategic move” into the retail market.

In its statement, Watches of Switzerland noted that Jorg Bucherer “has no family succession, and his wishes are to form a legacy foundation with the proceeds of this transaction.”

“This is not a strategic move into retail by Rolex. This is the best-judged reaction to the succession challenges of Bucherer SA,” Watches of Switzerland added.

“There will be no operational involvement by Rolex in the Bucherer business. Rolex will set non-executive Board members. Due to this acquisition, there will be no change in the Rolex processes of product allocation or distribution products.”

Nevertheless, shares of the London-listed group plunged by as much as 29% in early trade before paring losses.

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