Economy

LVMH agrees $16.2bn deal to buy U.S. jeweller Tiffany

LVMH agrees $16.2bn deal to buy U.S. jeweller Tiffany”

"We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come". Arnault - Europe's richest person - sought to woo Tiffany, which would expand LVMH's access to US luxury shoppers, with an increased $130 bid just days ago, people with knowledge of the situation said at the time.

Such a deal has been seen as way ahead for Tiffany, which has trailed rivals in terms of sales growth in recent years.

Roger Farah, chairman of Tiffany, said: "Following a strategic review that included".

The addition of Tiffany to LVMH's jewellery holdings that already includes Bulgari, Chaumet, Tag Heuer and Hublot will help it in its rivalry with Swiss-based Richemont, which holds Cartier among other brands, as well as lift LVMH's stature in the important American market.

It represents a 7.5-per-cent premium over Tiffany's closing share price on Friday and is more than 50 per cent higher than where the price stood before LVMH launched its effort to woo the company.

The two sides are close to an agreement after the French luxury goods company raised its offer price for the company known for its engagement rings and ties to Hollywood glamour to US$135 per share, sources familiar with the matter said. Tiffany, founded in NY in 1837 and featured in the 1961 movie "Breakfast at Tiffany's", had struggled with falling annual sales and profit since 2015, before a revenue turnaround in 2017. LVMH's last major deal in that area was in 2011, when it acquired the Bulgari brand. They were trading around $90 per share at the beginning of October, before LVMH first began to make overtures to Tiffany's management.

Alessandro Bogliolo, the Tiffany & Co chief executive said: "As part of the LVMH group, Tiffany will reach new heights, capitalising on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values".



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