Paris (AFP)

The world's number one luxury LVMH will cheer the famous jeweler Tiffany for $ 16.2 billion, a record acquisition for Bernard Arnault's group that will strengthen in the United States and add a big jewel to his portfolio.

"We have the ambition to shine this iconic brand with all the care and determination we have shown for all the houses that have joined us over our history," said the billionaire in a joint statement of the two groups released Monday morning.

In mid-October, LVMH had offered Tiffany an offer to buy at $ 120 per share, before bringing this proposal to $ 130 a few days ago, then finally to $ 135 per share in the home stretch.

According to the "definitive agreement concluded" for this acquisition, "the transaction values ​​Tiffany at about 14.7 billion euros, or $ 16.2 billion," specify the two parties.

For Tiffany, the operation "comes at a time when our brand is engaged in a major transformation process" and "will provide both additional support, resources and momentum to achieve these goals," said Alessandro Bogliolo, director general of the jeweler, quoted in the press release.

"The board concluded that this transaction opens up very promising prospects with LVMH, a group that appreciates Tiffany's strengths and will invest in its unique teams and assets, while offering attractive pricing and value to its clients. shareholders, "said Roger N. Farah, Chairman of the Board of Directors.

For LVMH, the acquisition of Tiffany will strengthen its presence in the United States, currently the second market of the luxury giant: 23% of its sales were made in the first nine months of the year, behind the Asia excluding Japan (31%).

- Number one everywhere -

LVMH will also be able to add a prestigious jeweler to its portfolio which already counts Bulgari (acquired in 2011) and Chaumet (acquired in 1999), and thus better compete in high-end jewelry - the only luxury sector where it is not number one - with his competitor (Swiss) Richemont, owner of Cartier and Van Cleef & Arpels.

The closing of the transaction is scheduled for mid-2020, "subject to the usual conditions precedent, including the approval of Tiffany shareholders and obtaining regulatory approvals", it is recalled.

LVMH is the largest market capitalization in France with a little over 200 billion euros and had a net cash of 5.5 billion euros at the end of its 2018 fiscal year.

In fiscal year 2018, the world's largest luxury goods company had sales of 46.8 billion euros, a record, while its net profit totaled 6.4 billion for an operating margin of 21, 4%.

For its part, the New York jewelery maker, founded in 1837, has been trying for years to modernize its image and attract a younger clientele.

The iconic house had reported annual sales in March for $ 4.4 billion (+ 6.5% year on year). Its growth is nevertheless hampered by the strong dollar and a drop in tourist spending in the United States.

Tiffany employs more than 14,000 people, including 5,000 artisan jewelers. It has a network of more than 320 stores around the world, which it manages all live, without multi-brand retailers. Diamond is his key business, with more than half of the jewelry sold being set with at least one of these stones.

© 2019 AFP