Swatch Group has said that it is planning to acquire the luxury jewellery unit of Canada's Harry Winston in a deal valued at $750 million.

The acquisition will allow Swatch to expand into high-end bracelets, rings and necklaces. Swatch Group, which is already the biggest watchmaker by sales in the world, has agreed to pay the amount in cash to acquire the unit. Following the acquisition, Swatch will directly compete with Richemont, which dominates the high-end jewellery market with its Cartier brand.

Chairwoman Nayla Hayek said in a statement that, “Harry Winston does brilliantly complement the prestige segment of the group. We are proud and happy to welcome Harry Winston to the Swatch Group family - diamonds are still a girl's best friend.”

The acquisition translates to $750 million and the assumption of up to $250 million of pro-forma net debt. The two companies will also explore opportunities to set up a joint venture for diamond polishing in order to combine the manufacturing and diamond expertise of the two companies.

Swatch said that the deal is subject to the approval of regulatory authorities and that the unit has 535 employees and a production company in Geneva.