NEW DELHI: LVMH is exploring an acquisition of US jeweller
Tiffany
& Co in what would be the biggest purchase by the French owner of
Louis Vuitton
, according to people familiar with the matter.
The luxury group approached Tiffany with a takeover proposal earlier this month, said the people, who asked not to be identified because the discussions are private. Tiffany is currently evaluating the bid and there’s no guarantee an agreement will be reached, they said.
The US company’s shares closed at $98.55 on Friday after gaining 22% this year for a valuation of $12 billion. LVMH has risen 49%, giving it a market capitalisation of about $215 billion.
An acquisition would give LVMH an iconic 182-year-old US brand known for its robin’s egg blue boxes and its role as a favourite haunt of Holly Golightly in Truman Capote’s ‘Breakfast at Tiffany’s’. The French company already owns labels ranging from Givenchy haute couture to Sephora cosmetics stores, Hublot watches, Bulgari jewellery and Dom Perignon Champagne.
A takeover of Tiffany would be bigger than the $7 billion LVMH paid for the rest of Christian Dior in 2017.
Representatives for LVMH and Tiffany declined to comment.
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