LVMH Moët Hennessy Louis Vuitton has secured the deal to buy Tiffany & Co for $16.2 billion. The record-breaking takeover by LVMH allows strengthening its hold on the jewellery sector and agglomerate its position as the world’s biggest luxury group. In a statement, the luxury group commit to invest in the American jeweller and broaden its consumer base with more affordable price points as well as stronger positions in the U.S.
“We have immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons,” said LVMH chairman and chief executive officer Bernard Arnault, Europe’s wealthiest person.
Tiffany & Co, America's biggest jeweller label was one of the few true American luxury house, has been subject to haggling for years before the parties settled on $135 per share.
With the rise of digital commerce calling for costly investments in infrastructure and technology it’s increasingly a case of viability of the fittest in the luxury sector.