Bernard Arnault Could Beat Bezos, Gates As Richest Person In The World Soon

Entrenched global billionaires Jeff Bezos and Bill Gates have come under a French challenge and may look worthless in front of the rising net worth of Bernard Arnault, chairman of French luxury major LVMH after the group’s Tiffany takeover.

On Monday, Arnault’s net worth zoomed and was more than $106 billion, per real-time wealth rankings by Forbes. Arnault's wealth jumped more than one percent Monday after the LVMH's stock surged over the company's plan to buy American jeweler Tiffany for more than $16 billion.

Arnault and his family hold more than 47 percent stake in the French luxury giant. Soaring LVMH shares have put Arnault within striking distance of surpassing Microsoft co-founder Bill Gates with his net worth of $107 billion, and Amazon CEO Bezos under $110 billion in the Forbes list.

However, in the Bloomberg index of billionaires, Arnault is behind Bezos and Gates by a wider margin as Arnault's net worth has been set at $100 billion while Gates and Bezos are $109 billion each.

However, Arnault, Bezos, and Gates are quite ahead of other big billionaires. They include Warren Buffett, the CEO of Berkshire Hathaway with a net worth of $86 billion and Facebook CEO Mark Zuckerberg worth $75 billion.

Others in the reckoning are Oracle's Larry Ellison and Spanish retail magnate Amancio Ortega with their under $70 billion net worth ranks.

Tiffany to boost LVMH profit

Meanwhile, Tiffany's takeover will boost the LVMH bottom line, according to the group’s chairman.

Bernard Arnault said on Monday that acquiring Tiffany will lift the operating profits of LVMH by 500 million to 600 million euros ($661.32 million) in the first year. The $16.2 billion deal is expected to close by June next year.

According to the Reuters report, LVMH would finance the purchase with debt and quoted Arnault saying the group could pay interest of less than 1 percent to issue bonds.

The CEO also said the LVMH group will be making fresh investments in communication, stores and new products at Tiffany although no management shake-up is on the cards.

Meanwhile, BBC News reported Arnault’s praise of Tiffany’s “unparalleled heritage” and how the brand's synergy has made it a good fit with his other brands.

Tiffany attained global fame after featuring in the 1961 Audrey Hepburn film “Breakfast at Tiffany's.” The celebrated New York institution and the flagship store is located on 5th Avenue, next to Trump Tower.