June 9 (Reuters) – French retail group PPR (owner of Gucci) is buying a 23 percent stake in Swiss luxury watch manufacturer Sowind Group, which includes the Girard-Perregaux brand, PPR said on Monday.

PPR (PRTP.PA: Quote, Profile, Research, Stock Buzz), which owns fashion house Gucci, could increase its stake in Sowind as part of a long-term partnership that aims to help Gucci establish itself in the high-end watch segment. Sowind Chairman Luigi Macaluso will retain control of the group and will join Gucci’s management committee.

“We are convinced that this agreement will create a number of important synergies for our watch brands and their further development,” Robert Polet, Gucci Group CEO, said in a press statement.

The deal comes weeks after PPR rival LVMH (LVMH.PA: Quote, Profile, Research, Stock Buzz) agreed to buy Swiss watchmaker Hublot.

The global luxury watch market is worth 18 billion euros ($28.5 billion) a year, according to an estimate from Swiss bank Vontobel. (Reporting by Jessica Mead; Editing by David Holmes)