Dufry (DUFRY) stock surged Friday after a filing with the Swiss regulator showed the world's second largest luxury goods firm, Richemont (CFRUY) , jetting into the number four spot on the duty-free retailer's shareholder register.
Richemont, the owner of the Cartier watch brand and the most significant rival to LVMH (LVMUY) , declared a 5% stake in the company. The declaration comes less than a month after China's HNA bought a 16.8% slice of the retailer, for an undisclosed sum, from existing shareholders.
Shares of Dufry were up more than 6% in Zurich, to change hands at an intraday high of Sfr 172.40 before paring gains, far outpacing the 0.42% gain for the Stoxx Europe Personal & Household Goods index.
The target company operates duty-free and duty-paid stores in airports, ports and other travel facilities and so it is exposed to changes in flows of international tourists and business travellers.
Richemont, which sells products in Dufry stores, said in a statement that it has taken the stake in order to exploit an anticipated increase in travelling "in the second machine age".
The company has been a frequent acquirer of other businesses in the luxury space over the years, building a portfolio of around 20 prominent brands. Stronger ties with a retailer such as Dufry could potentially enable it to move more of its products through the retailer's stores.