EC NOD SEEN ON DE BEERS
PARIS — The proposed joint venture between LVMH Moet Hennessy Louis Vuitton and The De Beers Group is expected to get the green light from the European Commission as early as today, sources said.
The venture, designed to create a new prestige jewelry brand, hit a bump last April when the EC asked for more time for an in-depth investigation of the plan. The commission, after an initial one-month probe, expressed concern that the company, named Rapids World Ltd., could “lead to the reinforcement of the market position of De Beers in the upstream markets for the supply of rough diamonds,” where it already holds a dominant position.
At the time, both LVMH and De Beers countered that the new company would increase competition in the retailing of diamond jewelry.
Asked about the likelihood of EC approval, an LVMH spokesman had no comment Tuesday. De Beers officials could not be reached for comment.
As reported, De Beers and LVMH plan to invest $400 million in the venture over the next five years and to open the first shops for the new brand within the next year or so.