Sold! LVMH buys Tiffany in $16.2 billion (Dhs59.5 billion) deal
In one of its biggest moves of the year, LVMH Moët Hennessy Louis Vuitton just acquired fabled American jeweller Tiffany & Co. for $16.2 billion (Dhs59.5 billion), solidifying its place as the world's biggest luxury group.
The deal, which saw LVMH initially bid $120 (Dhs440) per share back in October before both parties settled on $135 (Dhs495), will help re-energise the jewellery brand and its business which has seen a substantial drop in interest in America as well as abroad. The blockbuster move will strengthen LVMH's position in jewellery, creating heady competition for Swiss conglomerate Richemont, which owns both Cartier and Van Cleef & Arpels, and has dominated the hard luxury category in the past few years.
"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 chairman and chief executive officer Bernard Arnault in a statement. "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."
With 75 distinguished Houses, Tiffany now joins LVMH's massive stable of luxury brands which include fashion houses Louis Vuitton, Christian Dior, and Celine, as well as beauty retail giant Sephora. "As part of the LVMH group, Tiffany will reach new heights, capitalising on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values," Alessandro Bogliolo, chief executive officer of Tiffany.
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