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LVMH acquires Tiffany in $16.2bn deal

By Yana Berman

French luxury conglomerate adds the US brand to its jewellery and watch division

French company LVMH, which owns luxury brands including Dior and Givenchy, has agreed to buy US jeweller Tiffany for $16.2bn (£12.5bn, €14.7bn). According to an announcement published by LVMH, the deal will be closed by mid-2020.

The $16.2bn contract is almost $2bn up from the initial $14.5bn offer made late October, which valued Tiffany at about $120 per share. However, the US jeweller was not satisfied with the price and raised the bar to around $140 per share.

The new deal was approved by the Tiffany Board of Directors that recommended Tiffany shareholders to approve the transaction with LVMH.

Citi and JP Morgan will serve as financial advisors to LVMH, while Centerview Partners LLC and Goldman Sachs will help Tiffany.

Tiffany stock closed at $126.5 on Friday, November 22. The shares are set to react to the acquisition news this Monday.

The current deal becomes the French group’s biggest purchase to date, adding to its $5.2 billion purchase of Bulgari in 2011. The acquisition of Tiffany will strengthen LVMH’s position in jewellery and further increase its presence in the United States, the press release reads.

LVMH, owned by the richest man of France, Bernard Arnault, owns dozens of luxury brands, including Christian Dior, Louis Vuitton, Givenchy, Guerlain, Moët & Chandon, and Hennessy.

FURTHER READING: LVHM takes a shine to Tiffany and Co with $14.5bn offer

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