100 Billion Big Moves! LV Parent Company Will Get Tiffany'S Pocket?

According to Reuters, a person familiar with the matter said that Louis Weedon's parent company, "Lu Wei Ming Xuan group", has approached the US jewellery brand Tiffany and proposed to buy the latter at a price of 14 billion 500 million US dollars (102 billion 400 million yuan). By this news, Tiffany's stock price rose sharply on the 28 day.


14 billion 500 million dollars! Lu Wei Ming Xuan group wants to buy Tiffany.


According to Reuters quoted sources as saying, Lu Wei Hun Xuan group submitted a non binding initial offer to Tiffany earlier this month, which quoted about $120 per share for Tiffany, while Tiffany's stock closed at $98.55 per share last Friday.


At present, Tiffany has hired a consultant to assess Lu Wei Ming Xuan's offer, but has not yet responded to it and is not sure whether it will negotiate. At present, both sides refuse to respond to the news.


Headquartered in Paris, Lu Wei Ming Xuan group, one of the world's top three luxury groups, has a market value of US $215 billion, and is sitting on more than 50 brands including Louis Weedon, Dior and Fendi. In the first three quarters ended September, the group's overall sales rose 16% to 38 billion 400 million euros. Strong earnings also boosted share prices, which has risen 48% this year.


Despite its excellent overall development, Lu Wei Ming Xuan has no advantage in the brand jewelry market. In the 2018 fiscal year, LVMH group earned 46 billion 826 million euros, of which only 9% of watches and jewellery businesses accounted for the lowest proportion. In fashion related businesses, the growth of 12% was also the lowest, compared with 39% of the fashion leather sector.


LVMH group's Bvlgari, FRED and other jewellery brands are significantly less influential than Cartire, Van Cleef & Arpels, and Boucheron, Qeelin and Pomellato of its competitors. This may also be an important reason for LVMH group's willingness to buy Tiffany at a big price.


On the other hand, Tiffany, who has a history of more than 180 years, is famous for its expensive diamond wedding ring and operates more than 300 retail outlets worldwide.


The Chinese official website that opens the luxury jewelry brand Tiffany, the price of things may upset your imagination. Mao Xianqiu, who has a price of 81 thousand yuan (Chun Yin), has a piggy bank for 17 thousand and 500 yuan (Chun Yin), and a bookmark of 1459 yuan (Chun Yin).


This time, Lu Wei Ming Xuan's proposal for Tiffany's purchase may also indicate that the high-end jewellery market will soon grow. The deal will be the largest acquisition by Lu Wei Hun group and will be the biggest acquisition of European companies this year.