As per reports first disclosed on Tiffany’s website, the French multinational luxury goods conglomerate LVMH Moët Hennessy – Louis Vuitton SE, has proposed to Tiffancy & Co, the American luxury jewelry and specialty retailer headquartered in New York City, to buy its stake at $120 per share in cash, amounting to $14.5 billion. Speculations are rife that the latter may not settle for less than $140 per share, about $17 billion, even as Tiffany’s shares rose significantly since news broke. As per reports, Tiffany’s is reviewing the proposal yet.
Tiffany’s is targeting the millennials and young shoppers, to expand its business. An alliance with LVMH could help its mission to expand in Asian markets. LVMH reported $52 billion in revenues in the last fiscal. It already owns 17 high-end brands already including Gucci, Fendi, Christian Dior, as well as Bulgari jewellery. The merger will give LVMH a bigger presence in the US markets. Despite all signs indicating a possible merger, LVMH has issued a statement that the discussion need not necessarily culminate in an agreement.
