Originally rumoured around $14.5 billion, Louis Vuitton’s parent company and the biggest luxury goods company in the world, LVMH has secured Tiffany & Co. in a $16 billion takeover.
Following recent rumours, the $16 billion takeover was announced this week as the luxury goods firm secured the purchase of Tiffany & Co., a company with over 14,000 staff and around 300 stores worldwide.
LVMH owner Bernard Arnault will now own a much bigger slice of the luxury goods market, claiming Tiffany & Co. has an "unparalleled heritage" and fitted with the firm’s other brands, Louis Vuitton and Bulgari. It purchased Bulgari in 2011 for $5.2 billion (£3.2bn).
Tiffany’s sales have been struggling, with a 3% drop in 1H19 sales, currently hit by a strong US dollar and lower spending from tourists.
"We have an immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons [brand houses]," said Arnault on the sale.
"We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come," he concluded.
