Paris: In a hope to taste success in the United States, French luxury conglomerate LVMH has announced a $16.2 billion tie-up with US jeweller Tiffany & Co.. This will be the French luxury group's biggest-ever acquisition and will bolster its presence in the United States.
The deal comes after LVMH spent more than a month wooing Tiffany, the most iconic of US luxury brands known for its wedding rings and diamonds.
The companies said in a statement they "have entered into a definitive agreement whereby LVMH will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately 14.7 billion euros or $16.2 billion."
The deal adds Tiffany to LVMH's extensive stable of luxury brands that include Louis Vuitton, Dior and Moet & Chandon and will strengthen its position in the jewellery sector.
"We are delighted to have the opportunity to welcome Tiffany, a company with an unparallelled heritage and unique position in the global jewelry world, to the LVMH family," said the group's CEO, Bernard Arnault.
Such a deal has been seen as way ahead for Tiffany, which has trailed rivals in terms of sales growth in recent years.
"Following a strategic review that included a thoughtful internal process and expert external advice, the Board has concluded that this transaction with LVMH provides an exciting path forward..." said Tiffany's board chairman, Roger Farah.
