New York (AFP)
The global luxury giant LVMH is interested in the American jeweler Tiffany, which could allow it to strengthen in the United States and catch up in high jewelry, reports Saturday Bloomberg News Agency.
The group of French billionaire Bernard Arnault and the famous house, whose flagship adjoins the Trump Tower on Fifth Avenue in New York, are currently under discussion, says Bloomberg, citing unnamed sources.
There is no guarantee that these discussions will result in a transaction, warns the news agency.
Contacted by AFP, LVMH did not respond immediately.
"We refuse to comment on rumors and speculation," said a spokesman for Tiffany, whose turnover rose 6.5% to $ 4.4 billion in its last fiscal year .
The group's market capitalization, known for its engagement and wedding rings, was close to $ 11.90 billion at the close of Wall Street Friday, while LVMH, listed on the Paris Stock Exchange, was valued at around 215 billion.
Leaks over the existence of discussions between the two companies come just days after the inauguration in Louisiana of a Louis Vuitton factory by Mr. Arnault, accompanied by US President Donald Trump and his daughter Ivanka.
A potential takeover of Tiffany by LVMH would be one of the largest acquisitions of the French group, present in various sectors of activity, ranging from fashion to wines and spirits through perfumes, cosmetics and selective distribution (Sephora).
He would also strengthen LVMH in jewelry, where his brand Bulgari faces Cartier and Van Cleef & Arpels, both owned by the Swiss group Richemont.
An acquisition of Tiffany pendants and bracelets could allow LVMH to limit the negative effects of trade tensions that threaten the demand for luxury goods in China.
The pro-democracy protests in Hong Kong, which have lasted for several months, also put demand at risk.
© 2019 AFP