Tiffany shareholders approve acquisition by French luxury giant LVMH
Tiffany shareholders have agreed to the acquisition of the company by French luxury giant LVMH. The acquisition is LVMH's most expensive acquisition ever, and helps the company position itself in the luxury gem industry at a time when demand is soaring.
LVMH will buy Tiffany for $16.2 billion (14.7 billion euros).
"A globally recognised symbol of love, Tiffany will be an outstanding addition to our unique portfolio of luxury brands,” said Bernard Arnault, the CEO of LVMH, in a statement about the acquisition.
The world's top luxury company, LVMH owns brands like Louis Vuitton and Dior. Its jewellery holdings, include Bulgari, Chaumet, Tag Heuer and Hublot.
The company has been publically angling to acquire Tiffany since October 2019, with an initial offer of $120 per share. It went up to about $130 a month later, which convinced Tiffany to open its books, and LVMH then offered $135 to close the deal.
Tiffany & Co, founded in 1837, with headquarters on Fifth Avenue in New York, is one of the most famous jewellery brands in the world, with its jewellery presented in its trademark blue boxes.
But despite its fame, it has struggled to attract younger customers and has been lagging behind the competition in terms of sales. The brand is expected to benefit from LVMH's global network and promotional power.