Luxury goods giant behind Louis Vuitton and Christian Dior makes £11.3bn move to buy iconic American jeweller Tiffany & Co
- The proposed deal is reportedly worth $14.5billion (£11.3billion)
- LVMH confirmed today it has held preliminary talks with Tiffany & Co
- ‘No assurance that these discussions will result in any agreement’
LVMH, the French group behind the likes of Louis Vuitton and Christian Dior, has confirmed it has made an approach to buy iconic US jeweller Tiffany & Co in a deal reportedly worth $14.5billion (£11.3billion).
The world’s largest luxury goods group said it had held preliminary talks but that there is ‘no assurance that these discussions will result in any agreement’.
The acquisition of Tiffany would allow LVMH to expand further into jewellery – one of the fastest-growing parts of the luxury market – and give it a much broader foothold in the US.
The acquisition of Tiffany would allow LVMH to expand further into jewellery – one of the fastest-growing parts of the luxury goods market
LVMH, which is owned by France’s richest man, Bernard Arnault, owns a string of luxury brands.
They include fashion houses Givenchy, Fendi and Marc Jacobs, watchmaker Tag Heuer, jeweller Bulgari and champagne brands Moet & Chandon and Veuve Clicquot, among others.
The group issued a statement today following recent reports in the Wall Street Journal that LVMH had made an offer of $120 (£94) per share for Tiffany & Co.
That would be a sharp premium to Tiffany’s current share price, which closed at $98.55 on Friday.
If the deal goes ahead it would be LVMH’s biggest purchase to date. LVMH, however, did not provide any financial details about the possible deal.
The news sent shares in New York-listed Tiffany surging more than 30 per cent.
LVMH has stood out for several years as one of the top performers in the luxury retail sector.
LVMH owns a string of luxury brands including Louis Vuitto, Givenchy and Fendi
Tiffany on the other hand, has not been as resilient. It has struggled with stagnating sales as China’s slowing economy has weighed on spending by Chinese tourists, who make up a substantial portion of luxury spending.
The strong dollar has also made Tiffany products more expensive for consumers outside the US.
LVMH competes with the Kering Group, which owns Gucci and Saint Laurent, and Richemont SA, which owns Cartier.