LVMH, a French luxury giant, announced on the 25th that it had reached a final agreement with Tiffany, an American jewelry brand, to officially acquire Tiffany for us $16.2 billion.
LVMH said in a statement released on the same day that the transaction valued Tiffany at $135 per share. The deal was higher than the $14.5 billion cash offer made by LVMH last month.
It is reported that this is the largest transaction in the history of LVMH and the largest transaction in the history of the luxury industry, which has attracted extensive attention in the industry. LVMH said that the boards of directors of both companies have approved the transaction and hope to complete the transaction in 2020 after the approval of regulators and Tiffany shareholders.
LVMH said the deal would consolidate its position in the high-end jewelry and US markets. Public opinion analysis also generally believes that the acquisition will enable LVMH to have a broader foothold in the United States and expand its product range in jewelry. LVMH's shares rose 1.8% after the deal was announced.
LVMH is the world's largest luxury group with many well-known brands. The deal will help French luxury companies move beyond traditional goods such as clothing and handbags into luxury areas such as watches and jewelry. The acquisition is expected to more than double the size of LVMH's jewelry business.
Tiffany said the deal would ensure the company's long-term sustainability. Tiffany is trying to attract young shoppers and hopes to help it further expand its business through LVMH.