Louis Vuitton buy Tiffany for $16.2 billion
PARIS-Reuters
The $135-per share cash deal will boost LVMH’s smallest business, the jewelry and watch division that is already home to Bulgari and Tag Heuer, and help it expand in one of the fastest-growing sections of the industry.
Fashion and accessories brands including Christian Dior generate the bulk of earnings at LVMH, run by France’s richest man, Bernard Arnault, though growth in jewelry has shone in recent years.
“The acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the United States,” LVMH and Tiffany said in a joint statement.
LVMH shares opened up around 1.8 percent on Nov. 25
Tiffany CEO Alessandro Bogliolo said the transaction would “provide further support, resources and momentum.”
The companies said they expected to close the deal in mid-2020.
Tiffany said in the statement its board of directors recommended that shareholders approve the transaction with LVMH.
