Rolex, the legendary Swiss company buys the English Bucherer
Rolex, the legendary and historic Swiss company based in Geneva is world famous for its production of fine wristwatches as well as for being one of the largest companies operating in the watchmaking sector. It is controlled by the Hans Wilsdorf Foundation, a charitable and non-profit organization with related tax benefits. A world empire with twenty-eight subsidiary companies and an organization of 4,000 watchmakers in one hundred countries. Rolex is the largest manufacturer of certified chronometers built in Switzerland. Strengthened by its position, the company moves little in terms of acquisitions but, when it does, it creates a lot of noise. This is the case with the recent acquisition of Rolex by the British Bucherer which has upset the staid watch market.
Rolex, the shares of “Watches of Switzerland”, a large retailer, collapse
Shares of British retailer ‘Watches of Switzerland’, which also deals in Rolex watches, plunged more than 25%. This is because there is a strong fear that the new partnership could strengthen the direct competitor. Rolex could sell its products directly, without the need to resort to other intermediaries. Bucherer is a strong company with over 100 stores in major cities around the world. Half of these stores carry the Rolex brand and the other half the Tudor brand. All guarantee official assistance. The operation was born due to the age limit (87) of Jörg Bucherer, president of the company and grandson of the founder, who decided to sell without children or direct family members. The figures of the deal are not known but, in an official statement, Rolex declared that it intends to “perpetuate Bucherer’s success and preserve the close ties of collaboration that have united both companies since 1924”. Bucherer will keep its name and operate independently.
Rolex, the acquired company will remain independent and with the same historical name “Bucherer”
Direct competitor, Watches of Switzerland, said Rolex would not participate in Bucherer’s day-to-day operations or appoint non-executive members to the distributor’s board to stop the stock leak and decline. And above all, it is confirmed that there will be no changes in the allocation of its products to one or the other distributor as a result of this acquisition. But not everyone believed these statements that only time will confirm. The fact is that even in this case the prestigious Rolexes have kept their charm and above all their intrinsic value unchanged.
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