LV may acquire Tiffany. Why does LV acquire Tiffany
LV is a top luxury company, but recently LV has made a big move. LV may buy Tiffany, and it will buy it with us $14.5 billion in cash. It can be imagined that LV has great ambition to buy Tiffany, or it won't pay so much money. What's the reason for LV's acquisition?
Why did LV acquire Tiffany
Is it true that Tiffany, the top luxury brand, was acquired? Lv's parent company paid a high price for the acquisition, which is said to expand the U.S. jewelry market and increase the competitiveness of brand jewelry. However, has LV succeeded in the acquisition, and how did Tiffany respond.
According to foreign media reports, LVMH's parent company LVMH group plans to acquire Tiffany, an American jewelry brand, with a cash offer of US $14.5 billion. If the acquisition is successful, it will be the largest acquisition in the history of LVMH group. Some media quoted a person familiar with the matter as saying that LVMH has contacted Tiffany many times in the past few weeks and made an all cash offer of $120 per share. Based on this calculation, Tiffany's valuation is about $14.5 billion. If the two sides reach an agreement, this will be the largest acquisition transaction of LVMH group, surpassing LVMH group's $7 billion acquisition of Christine & middot in 2017; Dior's scale.
As the world's largest luxury goods group, LVMH has an annual revenue of about US $50 billion, and most of its sales still depend on Chinese shoppers. According to CNBC, although LVMH has performed well in the field of high-end retail in recent years, not all its brands can win the favor of the Chinese market.
The acquisition of Tiffany can increase LVMH's exposure in the jewelry field. Jewelry is already one of the fastest growing businesses in the luxury industry, according to Bain, a consulting firm. According to the data, the global jewelry market increased by 7% in 2018, reaching 18. In the author's opinion, Lv's acquisition of Tiffany is a little difficult at present. It seems that $14.5 billion is not enough to acquire Tiffany.