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South African billionaire Johann Rupert, chairman of luxury group Richemont, has seen his net worth fall by nearly $1 billion in just over two weeks, erasing a recent milestone. The decline reflects a drop in the market value of his stake in the Switzerland-based luxury goods company.
Rupert’s net worth down $900 million
On Oct. 28, Rupert, South Africa’s wealthiest individual and Africa’s second-richest after Nigerian tycoon Aliko Dangote, had a net worth of $18.5 billion, according to the Bloomberg Billionaires Index. Since then, his wealth has dropped $900 million, settling at $17.6 billion.
The fall in Rupert’s fortune is linked to his holdings in Compagnie Financière Richemont SA, the parent company of Cartier, Montblanc, and Chloé. Rupert owns 10.18 percent of the company’s shares and controls 51 percent of voting rights. Over the past two weeks, Richemont’s share price declined more than 3.5 percent, cutting Rupert’s stake from $12.8 billion to $12.1 billion.
Chloé faces EU fine for pricing
The share slump followed a European Commission fine of €20 million ($23 million) imposed on Chloé for breaching antitrust rules. Regulators said the French fashion brand limited independent retailers’ ability to set their own prices, violating EU competition laws.
The penalty was part of a wider European crackdown that also affected Gucci and Loewe, which were fined €120 million ($138 million) and €18 million ($21 million), respectively. While the fines were reduced because the companies cooperated with authorities, the move highlights increased scrutiny on luxury firms’ pricing practices in Europe.
Rupert’s influence persists despite wealth fluctuations
Despite the recent setback Richemont has continued to expand its global presence. In Europe Van Cleef & Arpels opened a flagship boutique in Florence while Panerai partnered with German jeweler Gerhard D. Wempe GmbH & Co. KG to launch its first store in Stuttgart. The group is also introducing its recently acquired Italian jewelry brand Vhernier to markets in Asia.
Even though Rupert's fortune is impacted by short-term market fluctuations, Richemont's expansion and diversified portfolio position the group for long-term growth across major luxury markets. Despite his fluctuating wealth, he continues to play a vital role in the luxury market.
