Moet Hennessy-Louis Vuitton SE LVMH Concludes Plan To Buy Tiffany At $16.2 Billion

Moet Hennessy-Louis Vuitton SE (LVMH), the French multinational luxury good conglomerate has moved to conclude plans to purchase Tiffany for $16.2 billion.

The Bulgari owner, LVMH reached the deal to buy Tiffany and Co. shares at $135 per share in cash. Shares of the New York-based Jeweler, Tiffany, closed at $125.51 on Friday after hopes were raised over a higher price deal. According to Bloomberg, the deal is the largest luxury-good deal ever and is going to give the LVMH brand access to a broader swath of American shoppers.

Since the news of the deal was announced by Financial times and Bloomberg, the shares of Tiffany has traded steadily above the initial price over of $120 per share approach of 26th October. Bloomberg intelligence analyst, Deborah Aitken, reported that the acquisition is set to more than double LVMH jewellery scale and boost its market share by more than 18%.

LVMH has reportedly raised its bid for Tiffany at least twice before the finalized price of $135 per share which took place on Sunday.

According to CNBC, LVMH plans to keep the Bulgari and Tiffany separate if the deal materializes. LVMH rivals including Gucci and Cartier are reportedly increasing their exposure to high-end jewellery.

Tiffany was founded in 1937 and featured in the New York movie "Breakfast at Tiffany's". The brand which was reported to have struggled with growth over the last several years and experienced declines in sales and profits since 2015, had a major revenue turnaround that took place in 2017.