Paris (AFP)

The French luxury giant LVMH was hoping Sunday to seize the famous American jeweler Tiffany for $ 16.3 billion, according to a source close to the record, confirming press reports that the transaction is about to be completed.

Including the debt ($ 350 million), the transaction is expected to exceed $ 16.65 billion, said the same source, confirming information from the Wall Street Journal, the Financial Times and the New York Times.

The two groups could formalize their union before the opening of European financial markets on Monday, although things can still evolve, said the same source.

According to her, the boards of directors of the two companies were meeting Sunday to validate the marriage, with a blessing more than probable.

The transaction, if confirmed, will be the largest ever acquisition by the group of Bernard Arnault, owner of the brands Louis Vuitton and Christian Dior, and will strengthen its presence in the United States, its second market.

The global luxury giant has not skimped: LVMH has therefore, according to the source close to the record, decided to raise its offer for the second time after reviewing the account books of the jeweler New York, which served as a backdrop to the first scene of the movie "Breakfast at Tiffany's" with Audrey Hepburn in 1961.

The French group originally offered $ 120 per Tiffany title, known for its engagement rings and diamonds, before bringing this proposal to about $ 130 last week.

A strong offer that prompted Tiffany to share its financial secrets and finally led LVMH to offer $ 135 per share Tiffany, which values ​​the US group to just over $ 16.3 billion.

Contacted by AFP, LVMH did not wish to comment, while Tiffany did not respond immediately.

- A diamond with a shine a little tarnished -

With the acquisition of the US group, LVMH would add a jewel of size to a crown that already has Bulgari (acquired in 2011) and Chaumet (acquired in 1999), allowing it to compete better in high-end jewelry - only sector luxury where he is not number one - with his Swiss competitor Richemont, owner of the claws Cartier and Van Cleef & Arpels.

In 2018, LVMH's Watches and Jewelry division, which also includes Tag Heuer, Hublot and Zenith and Fred, exceeded 4 billion euros in sales, or 9% of its total sales.

The network of 428 stores in this branch, the acquisition of Tiffany would add more than 320 stores worldwide, the American jeweler, whose diamond is the key activity, all manage live, without multibrand retailers.

LVMH's sales reached 46.8 billion euros last year, a record, while net profit totaled 6.4 billion for an operating margin of 21.4%.

For its part, the American group, founded in 1837 by Charles Lewis Tiffany, whose flagship adjoins the Trump Tower on the famous 5th Avenue in New York, seeks to dust off its image and attract a younger clientele.

The iconic house achieved a turnover of $ 4.4 billion in the fiscal year ended July 31, up 6.5% but growth is hampered by the strong dollar and lower spending tourists to the United States.

© 2019 AFP