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Dubai: Swatch Group, the world's largest watch manufacturer, said yesterday it had acquired a stake in Rivoli Group, a luxury goods retailer in the Gulf.
Dubai International Capital, a subsidiary of Dubai Holding, will continue to be the largest shareholder in Rivoli.
Swatch has opted not to disclose the value of the stake acquired.
The partnership will support Rivoli's regional expansion strategy, including its entry into Saudi Arabia and India.
"Our investment in Rivoli cements the long-term partnership we have shared for over two decades and will be not only beneficial to both parties, but also to consumers in the region," said Nayla Hayek, a member of the Swatch's board. "Our association with Rivoli Group has broadened strongly throughout this period to include the representation and retail of the spectrum of our watch brands in the UAE.
"The Gulf region possesses high growth potential and with this partnership we plan not only to tap into the opportunities that the region offers, but also to increase the service to the consumer," she said.
Turnover
Swatch, a Swiss company, has more than 19 brands. With a turnover of six billion francs in 2007, its brands range from the luxury segment with Breguet to the basic range, Swatch.
Rivoli manager Ramesh Prabhakar said the investment will serve to strengthen ties with the Swatch Group.
"We are delighted that the Swatch Group has chosen to be a part of Rivoli's success story," Prabhakar said.
"This partnership will enable us to expand our retail network and enter new and important markets where the demand for luxury watches remains high. Swatch Group will assist us in achieving even greater success and we look forward to a fruitful and long-term relationship," he said.
DIC, which acquired a significant stake in the Rivoli Group in 2007, welcomed the deal.
"It is with great enthusiasm that we welcome the Swatch Group as shareholder and strategic partner in Rivoli. We believe they will join us in providing the right backing for Rivoli's exciting growth plans," said Sameer Al Ansari, executive chairman and chief executive of DIC.
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