(Sharecast News) – Watches of Switzerland responded to concerns regarding the acquisition of Bucherer by Rolex on Friday, working to reassure shareholders of its continued access to stock.
It came after the luxury watchmaker announced it was acquiring luxury watch and jewellery retailer Bucherer on Thursday, contingent on the approval of Swiss competition authorities.
Bucherer has been an authorised Rolex dealer since 1924, and has also owned the US-based retailer Tourneau since 2018.
Rolex said it was acquiring Bucherer as its owner, Jorg Bucherer, is 86 years old and has no family succession.
“This is not a strategic move into retail by Rolex,” Watches of Switzerland said in its statement.
“This is the best-judged reaction to the succession challenges of Bucherer.
“There will be no operational involvement by Rolex in the Bucherer business.”
The company said Rolex would appoint non-executive board members, and claimed there would be no change in Rolex’s processes of product allocation or distribution developments as a result of the acquisition.
“All of the above is reviewed and confirmed by the highest level of Rolex management at Rolex HQ in Geneva, and locally in the UK and US,” the company said.
At 0833 BST, shares in Watches of Switzerland were down 25.31% at 521.5p.
Reporting by Josh White for Sharecast.com.