The takeover of British Bucherer by Rolex turned the watch market upside down. Shares in British retailer Watches of Switzerland, which also sells Rolex watches, tumbled more than 25% this Friday amid fears the new alliance would strengthen its rival, which Rolex might give preference to, to buy its products directly to sell without having to resort to other intermediaries. Bucherer has more than 100 stores worldwide, of which 53 sell the Rolex brand and 48 the Tudor brand, and also offer official after-sales service for both brands.
The transaction was made following a decision by Jörg Bucherer, President of the company and grandson of the founder, who at the age of 87, in the absence of descendants to take over the company, decided to part with the company. In a statement, Rolex confirmed the process without revealing the amount paid. According to the text, the aim of the Geneva brand is “to continue the success of Bucherer and to maintain the close cooperation between the two companies since 1924.” Rolex confirmed that the company will keep its name and continue to operate independently.
Watches of Switzerland has also reacted and tried to stop the fall in its shares on the London Stock Exchange. The company said in a statement that Rolex management had assured it that the acquisition of Bucherer was “not a strategic move into retail”. In other words, Rolex does not participate in the day-to-day operations of the Bucherer business, nor does it appoint non-executive directors of the distributor. And most importantly, this takeover will not change anything in the attribution of the products to one or the other distributor, which the market, given its reaction to Watches of Switzerland’s punishment, doesn’t quite believe in.
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