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LVMH has officially acquired Tiffany&Co.

Bernard Arnault's luxury giant has bought the American jewelry in a $16,2 billion deal

LVMH has officially acquired Tiffany&Co.  Bernard Arnault's luxury giant has bought the American jewelry in a $16,2 billion deal

UPDATE 25.11: after the leaks surfaced yesterday, the news is now official. Bernard Arnault's luxury giant has officially acquired Tiffany&Co., the historic American jewellery with more than 180 years of history, in a $16,2 billion deal, paid in cash, approximately $135 per financial action. LVMH continues in this way the diversification of its stock portfolio, ranging from luxury fashion brands such as Louis Vuitton, Dior, Celine, fine jewellery by Bulgari, cosmetics, champagne, basically redefining modern luxury. 

 

 

LVMH is interested in entering one of the fastest-growing sectors of the luxury market: jewellery. As reported by the Wall Street Journal, in fact, the French giant would be interested in the acquisition of Tiffany&Co. The offer would amount to $14.5 billion dollars (nearly €13 billion euros), valuing about 120 dollars (about 108 euros) per share reached by the U.S. chain of stores at the closing of Wall Street last Friday. 

If the acquisition succeded, it would be the largest operation ever made by the French luxury group, even bigger than the one to acquire the Christian Dior label in 2017, valued €12 billion. Bernard Arnault not only wants to add to Cartier and Bulgari, already owned by him, an iconic brand made immortal by the famous movie starring Audrey Hepburn, but, above all, he wants to consolidate his position on the American market, as confirmed by the new LVMH factory opened in Texas last week with the presence of Donald Trump and his daughter Ivanka

According to the Financial Times, Tiffany is set to reject the offer, with the report saying the offer was too low. All this despite the brand's not going through a positive period. Recently, the jewellery chain has seen its revenues stop at $4 billion a year and its stocks fall to $60 per share. At the moment, under the leadership of Alessandro Bogoglio, the American giant is trying to find a new stability. Among its first steps were the restyling of the flagship store on the Fifth Avenue in New York and of its London store in Covent Garden, which has also opened a restaurant, and the launch of a line of men's jewellery.

Stay tuned on nss magazine for all the updates.