Louis Vuitton acquires Tiffany for US $ 14.7 billion
The French company announced the purchase of the American company known for its luxury jewelry creations
This weekend the French group Louis Vuitton Moët Hennessy got the largest commercial transaction in its history by finalizing the purchase of the American Tiffany, founded in New York in 1837.
The French company has taken over the jewelry giant with a strong presence in the international market thinking on “shining like never before” by taking control of Tiffany’s shares for 14.7 billion euros (equivalent to 16.2 billion of dollars).
Through a joint statement, the two consortiums claim “to have reached a final agreement worth $ 135 a share.” The commercial operation, approved by the administrative councils of Louis Vuitton and Tiffany, will be completed in the middle of next year after the US shareholders approve the purchase and obtain regulatory authorizations.
With this transaction, LVMH reinforces its position in the market. It is appropriate to mention that it currently has “75 fashion, beauty and luxury stores in the high jewelry sector, which allows it to have a greater presence in the United States.”
Without a doubt, the negotiation will allow LVMH to reach other territories. Roger N. Farah, chairman of the Tiffany board of directors, said the acquisition has been accepted “after a strategic review that includes a deep inspection that opens up very promising prospects.”
Tiffany has long sought to stay in the market, but its progress is hampered by the dollar’s weight and reduced tourism spending in the United States. In this sense, the Louis Vuitton emporium came not only to acquire the company but to reinforce its heritage and tradition in the fine jewelry industry.
M.Pino
Source: lavanguardia
