Louis Vuitton to acquire Tiffany jewelry company for $14.5 bln

LVMH, a French group that owns, among others Louis Vuitton brand, officially announced the acquisition of the American jewelry company Tiffany & Co. The bid is $14.5 billion, and the transaction is expected to be completed in 2020. Thus, LVMH would gain greater access to the luxury goods market in the USA.
The offer appeared at the time when Tiffany & Co. is facing stagnation of sales in the luxury goods segment, caused among others by the economic slowdown in China, which is one of the largest markets for high-end goods. The dollar exchange rate also translates into a higher price for Tiffany products outside the US.
Thus, the French group will expand its portfolio of 70 luxury brands, in which it already has, among others, Christian Dior, Givenchy and Tag Heuer. This is another acquisition of LVMH, which over the past several decades has acquired, among others Sephora, Fendi, Bulgari and Belmond brands. The group's portfolio includes perfumes, watches, jewelry, alcohol, as well as luxury hotels. LVHM also owns the Le Parisien daily and the Les Echos economic daily. The company has over 4,500 stores around the world, and in 2018 reported sales revenues of € 46.8 billion. LVMH belongs to Bernard Arnault, the richest European whose assets have recently exceeded $100 billion.
(Business Insider)