5.5 C
London
Monday, November 30, 2020

French luxury goods giant LVMH secures deal for US jeweller Tiffany

Must read

Police search Maradona doctor’s home and office

Argentine police have searched the home and office of one of Diego Maradona’s doctors, taking away medical records as part of investigations into the...

Doctor says he did the best he could for Diego Maradona

Diego Maradona’s doctor Leopoldo Luque says he did the best he could for the World Cup winner and is not responsible for his death. Maradona...

US may see ‘surge upon surge’ of virus in weeks ahead, Fauci warns

The top infectious disease expert in the US has said the country may see “surge upon surge” of coronavirus over the coming weeks, and...

‘World’s loneliest elephant’ ready to fly to new home

An elephant dubbed the “world’s loneliest” after languishing alone for years at a zoo in Pakistan has been readied for his flight to a...

The largest deal in luxury is back on after New York jeweller Tiffany agreed to a slightly reduced offer from Paris-based LVMH.

LVMH will now pay 131.50 dollars (£100) for each Tiffany share, putting the total price tag at 15.8 billion dollars (£12.02bn), down from the 16.2 billion (£12.33) that was first offered earlier this year.

The owner of Louis Vuitton, Christian Dior and Fendi, along with a series of wine and champagne brands, appeared to walk away from the acquisition last month after it said the French government had pushed for a delay because of the threat of proposed US tariffs.

We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany.

                                                            Bernard Arnault

But the reasons for its cold feet seemed to shift, and there was pressure from investors on both sides to make a deal happen.

Rumours that the two luxury companies had rekindled talks began to surface in recent days.

“We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany,” LVMH CEO Bernard Arnault said in a statement on Thursday.

Tiffany, with its famed blue boxes, has in recent years attempted to regain the lustre of the “Breakfast At Tiffany’s” era as its customer base aged.

It has shifted its focus to younger shoppers and made a significant push online. The deep pockets of LVMH could go a long way in helping that transformation along.

LVMH, led by billionaire Mr Arnault, believes Tiffany will strengthen its position in high-end jewellery and in the US market.

LVMH is also making a bet on China’s economy, where Tiffany has been expanding.

The buyout has been approved by the boards of both companies and is expected to be completed early next year.

- Advertisement -

More articles

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Latest article

Police search Maradona doctor’s home and office

Argentine police have searched the home and office of one of Diego Maradona’s doctors, taking away medical records as part of investigations into the...

Doctor says he did the best he could for Diego Maradona

Diego Maradona’s doctor Leopoldo Luque says he did the best he could for the World Cup winner and is not responsible for his death. Maradona...

US may see ‘surge upon surge’ of virus in weeks ahead, Fauci warns

The top infectious disease expert in the US has said the country may see “surge upon surge” of coronavirus over the coming weeks, and...

‘World’s loneliest elephant’ ready to fly to new home

An elephant dubbed the “world’s loneliest” after languishing alone for years at a zoo in Pakistan has been readied for his flight to a...

Hong Kong to close schools amid virus surge

Hong Kong has reported 115 new coronavirus infections, the first time it has seen cases reach triple digits since August 2. The government has also...
%d bloggers like this: