LVMH, owner of Louis Vuitton, announces tiffany purchase for $16.2 billion

French luxury group LVMH announced on Monday (25) the purchase of American jewelry store Tiffany for $16.2 billion (the equivalent of 14.7 billion euros), the largest acquisition in the company's history run by billionaire Bernard Arnault. In a joint statement, the two groups claim to have "concluded a definitive agreement" for lvmh's acquisition of Tiffany at a price of $135 a share. Tiffany was founded in 1837 in the U.S. and has more than 300 stores worldwide. The brand is the main reference of jewelry in the world. Diamond is your main activity. More than half of your jewelry has at least one of those stones. French luxury giant LVMH, led by billionaire Bernard Arnault, is a world leader in the luxury sector, present in fashion, wines, perfumes and cosmetics. Its more than 70 brands include Louis Vuitton, Christian Dior, Marc Jacobs, Moet & Chandon, Dom Pérignon, Kenzo and Givenchy. "We have the ambition to shine this flagship brand with all the care and determination that we have been able to demonstrate in all the brands that we have united throughout our history," Bernard Arnault said in the statement. "Tiffany is a company that enjoys a unique asset and positioning in the world of the high jewelry market and inspires us an immense respect and great admiration. We are happy to allow you to continue shining in the future," Arnault added. For the French group, the acquisition "will strengthen lvmh's position in high jewelry and increase its presence in the United States. Tiffany's arrival, which adds up to the group's other 75 homes, will give a new dimension to the watch and jewelry industry," the statement said. The offer was approved by the company's boards of directors and Tiffany's collegiate recommended that its shareholders agree to the proposal. The expectation is that the deal will be completed in mid-2020, following the approval of regulatory entities and investors. LVMH shares rose 1.8% after the announcement. The French group initially proposed on October 15 $ 120 per share of Tiffany, before raising the offer to $130 last week, France Presse said. The latest offer led Tiffany to reveal her accounts to LVMH, which finally decided to propose $135 per share. In fiscal 2018, the French group recorded sales reaching 46.8 billion euros, a record, with a total profit of 6.4 billion euros and operating margin of 21.4%. The New York jewelry store, founded in 1837, sought several years to modernize its image and attract a younger clientele. Turnover was $4.4 billion in the fiscal year ended July 31, 6.5% more than in the previous period.