This morning, luxury giant LVMH Moët Hennessy Louis Vuitton SE confirmed that it has reached a $16.2 billion deal to buy American jeweller Tiffany & Co. There had been rumors for a long time about this blockbuster purchase. The largest luxury deal gives the famous French group, that is the world’s largest luxury conglomerate and Europe’s second-most valuable company, a bigger presence in jewelry and strengthen its position in the US.
Object of desire: An engagement ring by Tiffany & Co.
Jewelry is one of the best-performing luxury categories and is predicted to grow. The deal also allows LVMH to compete further with Swiss conglomerate Richemont, which owns Piaget, Cartier and Van Cleef & Arpels, and a lot of watch brands.
Nevertheless, Tiffany & Co. has been facing weak demand and will likely need heavy investment to revamp its business. It will be an interesting journey we will surely follow… stay tuned!
Photos: Courtesy of Tiffany and © Sandra Bauknecht