He wants to be first everywhere. The French luxury giant LVMH acquired the American jeweler Tiffany for $ 14.7 billion on Monday, November 25, in an effort to dominate the only luxury sector where he is not yet world leader: high jewelry of range.

The amount spent is a record for the group founded in 1987 by Bernard Arnault, the richest man in France. The final offer - $ 135 per share - has also been revised up twice since LVMH released its desire to acquire the US brand.

With this acquisition, LVMH's watch & jewelery division, which currently owns the Bulgari, Chaumet and Tag Heuer brands, has one of the most recognized brands in the world, made famous by the 1961 film "Diamants sur canapé". "with Audrey Hepburn. It is especially for Bernard Arnault the opportunity to compete with the Swiss Richemont, currently world number 1 in luxury jewelery thanks to Cartier and Van Cleef & Arpels.

Image and profitability

Tiffany is not only Hollywood glamor of the 1960s. The brand, founded in 1837 in New York, also has a strong presence in the United States, a market on which LVMH admits it can still strengthen. "The acquisition of Tiffany reinforces LVMH's position in fine jewelery and further increases its presence in the United States," said the French group in the statement officializing the acquisition.

But LVMH will have work to justify the price spent. The American jeweler, especially known for his engagement rings and alliances, is considered an aging brand that suffers from a lack of image, "especially with new generations," said Les Echos.

Tiffany does not shine either by its profitability. Its operating margin, one of the main financial indicators for determining the good shape of a company, has been declining for several years and stands at 17%. Far from that of Richemont which rises to 31.5%.