The French luxury group LVMH Moët Hennessy Louis Vuitton SE (MC) and the US jeweler Tiffany & Co. (NYSE: TIF), have today announced that the companies have entered into a definitive agreement.
This means that LVMH (MC) will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion.
Tiffany´s share is trading at 133,02 dollars, up 5,98 % and LVMH´s at 402,20 euros, up 1,50 %.
According to the Tiffany´s and LVMH´s joint press release, the acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the United States. The addition of Tiffany will transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Houses.
-We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewelry world, to the LVMH family. We have an 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. We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come, Bernard Arnault, the chairman and CEO of LVMH said in the release.
– Following a strategic review that included a thoughtful internal process and expert external advice, the Board has concluded that this transaction with LVMH provides an exciting path forward with a group that appreciates and will invest in Tiffany’s unique assets and strong human capital, while delivering a compelling price with value certainty to our shareholders, Roger Farah, chairman of the Board of Directors of Tiffany, said.
According to the release, the transaction is expected to close in the middle of 2020 and is subject to customary closing conditions, including approval from Tiffany’s shareholders and the receipt of regulatory approvals.