LVMH Moët Hennessy Louis Vuitton SE will start sponsoring races from 2025, with brands including Louis Vuitton, Moët Hennessy and TAG Heuer all involved, according to a statement Wednesday. The deal confirms a report last month by Bloomberg News of an imminent deal between both parties.

The 10-year tie-up could be worth more than $1 billion with annual sponsorship fees topping $100 million, people familiar with the negotiations previously told Bloomberg News.

The deal is both a blow to Rolex SA, the top Swiss watch brand that has been the timekeeping sponsor of F1 since 2013, and marks LVMH’s bid to capture the boom in sports investment and viewership.

LVMH was a major sponsor for the Olympic and Paralympic Games held in Paris over the summer, providing financial support worth €150 million ($166 million). Its brands featured prominently throughout the competition.

LVMH’s Louis Vuitton and jewelry brand Tiffany & Co. regularly feature in global sporting events notably with the trunk cases at the Fifa World Cup or trophies for the NFL. Louis Vuitton has in particular run famous ad campaigns with footballers Cristiano Ronaldo and Lionel Messi as well as tennis players Rafael Nadal and Roger Federer shot by the photographer Annie Leibovitz.

The targeting of F1 by LVMH follows a resurgence in interest in the motorsport in recent years, driven by an expansion in race venues and the Netflix series ‘Formula 1: Drive to Survive.’

Top Swiss brand Rolex has served as the official timekeeping sponsor of Formula 1 since 2013, with its signature green and gold adverts becoming commonplace at F1 tracks. The loss of the sponsorship deal is a setback for the world’s most successful watch brand that has become closely associated with the top tier of motor racing and also sponsors tennis and equestrian events.

A Rolex official in Geneva declined to comment on the announcement. 

LVMH’s Tag Heuer brand has a long history with Formula 1 and motor sports, dating back to when it was privately owned under the Heuer brand name. In the 1980s Tag Heuer introduced a quartz-powered, bright-colored plastic-cased timepiece called the ‘Formula One’ that sold millions of units. The brand introduced a limited edition reissue version of the Formula One watch in a collaboration with sportswear brand Kith this year.

Sales of LVMH’s watch unit, which includes the Tag Heuer, Hublot and Zenith brands, led by Frederic Arnault, one of LVMH founder Bernard Arnault’s five children, trail Rolex, as well as brands owned by Richemont and Swatch Group AG in total market share.

“In recent years, Formula 1 has truly become one of the most desirable sports in the world,” said Frederic Arnault in a statement, “We are only at the very beginning of this partnership.”

The deal also comes amid a demand slowdown for high-end goods. Shares of LVMH have fallen by about 8.9% so far this year as concerns about the appetite of Chinese consumers remain.

(Updated with additional context throughout.)