16 Billion 200 Million! LVMH And Tiffany Reach An Agreement

In November 25th, luxury goods giant LVMH Mo t Hennessy Louis Vuitton SE (hereinafter referred to as "LVMH") officially announced the final agreement with the luxury jeweler Tiffany Co. (hereinafter referred to as "Tiffany"), which will be purchased at a price of $135 per share, with a total price of about $16 billion 200 million. It is understood that the acquisition will be completed in the middle of 2020, and will become the largest transaction in the history of LVMH.

LVMH said that the acquisition of Tiffany will enhance LVMH's position in the jewelry industry, while further enhancing its market share in the United States. Tiffany will also change the LVMH watches and jewelry boards, and improve the 75 brands of LVMH. Tiffany chief executive Alessandro Bogliolo said Tiffany has always focused on implementing our key strategy to drive sustainable long-term growth. The acquisition takes place in the brand's internal transition period. It will not only provide more support, resources and power for the future development of Tiffany, but also enable Tiffany to achieve new heights with LVMH.

Tiffany was founded in 1837. At present, Tiffany has more than 300 retail stores worldwide. In 2018, Tiffany's global net sales amounted to $4 billion 400 million, an increase of 7% over the previous year, and net income of $586 million, compared with $370 million a year ago. In October of this year, Tiffany announced that it had received an offer from LVMH, when the offer price was $120 per share. The price per share of the formal purchase increased by about 12.5% compared with that in October.

In 2018, sales of LVMH from watches and jewellery were 4 billion 123 million euros, the lowest among five sectors. Some analysts pointed out that the jewelry industry acquisition target scarce, the transaction will complement LVMH's performance in the jewelry field.