LVMH Might Take Over US Jewelry Brand Tiffany

LVMH Might Take Over US Jewelry Brand Tiffany

Business

French multinational luxury group LVMH has approached jewelry brand Tiffany & co with an acquisition offer to take over the company. The jewelry brand is going through a tough time due to an increased tariff on its exports to China. On the other hand, LVMH has been planning to expand its business in the United States for years. The officials of LVMH have reportedly made a non-binding preliminary offer to Tiffany. The jewelry brand has not yet responded to the offer. It is still uncertain that Tiffany will negotiate a deal with LVMH. As the reports, the matter is confidential and only a few people in the company are aware of it.

LVMH has been touted as the world’s largest luxury group by its sales. LVMH group owns exquisite brands like Christian Dior, Louis Vuitton, Fendi, Givenchy, and Sephora. The group has been a top performer in the fashion retail sector for several years. It has beaten the sales forecast for the third quarter with a market capitalization of 194 billion Euros despite the trade war between China and the United States. A take over of Tiffany by LVMH is likely to be it’s one of the largest acquisitions. It will also give Paris based company great exposure to the US market. The purchase of Tiffany would add to its reach in the jewelry market after the acquisition of Italian jeweler Bulgari worth 5.2 billion dollars.

However, Tiffany is dealing with many challenges at this time including the US and China trade war, Low tourist spending and a strong US dollar. It has been trying to revamp its position through with more affordable diamond jewelry like earrings and pendants among millennial buyers. Shares of the New York-based company were sold off quite heavily towards the end of last year. So far, they have been able to recover approximately 22 percent of it in 2019. The company managed to employ more than 14000 people in the middle of revamping. The exact amount of Tiffany’s acquisition by LVMH is still unclear.

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