Following months of extensive negotiation and weeks of speculation, LVMH has confirmed the largest acquisition in the luxury group’s history and one of the biggest pieces of business the luxury retail industry. LVMH purchased Tiffany & Co. for approximately $135 per share after initially offering $120 per share.
The acquisition of Tiffany by LVMH highlights the objectives of the French conglomerate to retain a global market leadership position in the personal accessories sector, specifically the jewellery category, estimated globally at $357 bn. Tiffany & Co. being one of the most desirable international jewellery brands, retaining 1% of the global jewellery category, will provide LVMH with an excellent market entry to deploy its luxury brand building knowledge and curated expertise, but also gain access into China and the USA, which are globally the two most attractive jewellery markets.
