Bernard Arnault offers the American jeweler Tiffany

Text by: Myriam Berber

By a very large majority, Tiffany shareholders gave their approval this Tuesday to the acquisition of the New York jeweler by the French luxury giant LVMH, for more than 16 billion dollars. With Tiffany, the leading American luxury brand, LVMH is strengthening its presence in the United States.

Publicity

This is the largest acquisition ever made by the group of Bernard Arnault, owner of the Louis Vuitton and Christian Dior brands. The French luxury giant offered $ 135 per share to Tiffany. An operation which values ​​the American jeweler at a record sum of $ 16.2 billion.

However, the transaction still needs to be approved by the competition authorities in around ten countries. Tiffany should enter the middle of the luxury group in mid-2020.

The objective for LVMH is to strengthen its presence in the high-end jewelry sector. The only luxury sector where it is not number one. In this area, LVMH already owns the Italian Bulgari, bought in 2011, and the Frenchman Chaumet.

The United States, a market of choice for LVMH

LVMH will now have in its portfolio the American Tiffany, whose diamond is the key activity. The brand, renowned worldwide, has a network of 320 stores around the world. Tiffany's sales reached $ 4.5 billion in 2019. For Tiffany, this acquisition will allow it to regain market share. The American jeweler no longer attracts young customers and wants to modernize its image. The LVMH group will help it.

This operation will also allow LVMH to strengthen its presence in the United States, its second market after Asia, representing 24% of its total turnover. The American territory now concentrates the investments of the luxury group. LVHM announced in late January a multi-year partnership with the NBA , the basketball league. Finally, Bernard Arnault is one of the rare foreign bosses to be received by President Donald Trump. In the 1980s, the two men did business together in the real estate industry. They are so close that they opened a Vuitton workshop last year in Dallas, Texas.

A group of 75 brands

For ten years, the luxury giant has multiplied financial operations. French billionaire Bernard Arnault, whose fortune is estimated at nearly 100 billion euros, has built his empire with acquisitions. The Christian Dior and Céline fashion houses. The Ruinart, Veuve Clicquot, Moët and Chandon champagnes. Givenchy and Guerlain perfumes. And the list is still long ... The luxury giant brings together a total of 75 brands.

On the Paris stock exchange, the title continues to climb. With the oil tanker Total, the LVMH group is in the forefront of market capitalizations. And it's far from over. LVMH's objective is to join the club of companies whose capitalization exceeds 500 billion dollars.

Newsletter With the Daily Newsletter, find the headlines directly in your mailbox

Download the app

• France
• United States
• Economy
• Fashion

On the same subject

Economy

French luxury giant LVMH offers New York jeweler Tiffany

France / Fashion

France pop star Rihanna embarks on luxury with LVMH

France / Fashion

The Dior fashion house enters the fold of LVMH