// LVMH buys Tiffany & Co in largest luxury goods deal of all time
// CEO Bernard Arnault pays £104 a share for the US jeweller
// Transaction is expected to go ahead in summer 2020
French luxury conglomerate Moët Hennessy – Louis Vuitton (LVMH) has acquired Tiffany for EUR 14.7 billion (£12.60 billion), in the largest luxury goods deal by ever agreed.
LVMH will pay $135 (£104) a share for the US jeweller, according to a statement on Monday. That values Tiffany 13 per cent above an initial $120 (£93) a share bid.
In a move that LVMH said would “transform” its Watches & Jewellery division, the acquisition raises the group’s jewellery profile, boosting its share of the luxury jewellery market against rival Richemont, and improving its presence in the US.
“We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewellery world, to the LVMH family,” said LVMH chief executive Bernard Arnault.
“We have an immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons. 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,” Arnualt added.
“This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweller,” said Tiffany chief executive Alessandro Bogliolo.
“As part of the LVMH group, Tiffany will reach new heights, capitalising on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values,” Bogliolo added.
LVMH’s acquisition of Tiffany has been approved by the boards of directors of both companies, with the Tiffany board of directors recommending that Tiffany shareholders approve the transaction with LVMH.
The transaction is expected to close in summer 2020.