+1-888-308-5802     
News Contact Us

LVMH discusses a potential takeover of Tiffany for $14.5 billion

Author : Pankaj Singh | Published Date : 2019-10-29 

LVMH, one of the biggest luxury goods conglomerates in the world recently revealed that it is planning a takeover of the American luxury jewelry company, Tiffany & Co. Both the companies confirmed in separate statements that a takeover bid is being reviewed and a price of nearly $14.5 billion is being considered.

For the record, LVMH already owns some of the leading luxury brands in the world including Givenchy, Bulgari and Christian Dior. The company also owns Louis Vuitton handbags, Dom Pérignon, Kenzo, Moet& Chandon and Tag Heuer. Now it is aiming at owning Tiffany as jewelry has been ascertained to be one of the fastest growing luxury sectors.

LVMH has released a statement saying the preliminary discussions to acquire Tiffany is being held but there is no certainty of a deal being struck. According to Tiffany, it has received a non-binding, unsolicited proposal from LVMH for $120 per share in cash.

Incidentally, in 2011 LMVH bought Bulgari for $5.2 billion. If LVMH buys Tiffany for $14.5 billion then it would the biggest deal for the company after the Bulgari acquisition. It will also take LVMH a step closer to its most potent rival Richemont which owns Cartier, thus strengthening LVMH’s position in the US markets.

Reportedly, LVMH is working rapidly to boost its shares in the US markets and to fulfil that end, it has opened a factory in south Texas. The inauguration of the factory was attended by Mr. Arnault, the owner of LVMH and the richest man in France as well as by the President of the United States, Donald Trump and his daughter Ivanka Trump.

Notably, Tiffany's store in New York is located in 5th Avenue, next to the Trump Tower. It was founded in 1837 by Charles Lewis Tiffany and the name of Tiffany became a household name around the world when the brand was made famous by the 1961 box office success of Breakfast at Tiffany's, that was loosely based on a novella by Truman Capote and starred Audrey Hepburn.

Source Credit: https://www.bbc.com/news/business-50205953

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Sir Richard Branson to contribute £200M to stabilize Virgin Atlantic

Published Date: 2020-07-14         Author: Pankaj Singh

British business magnate Sir Richard Branson had reportedly announced that he intends to contribute a sum of £200 million as part of the £1 billion plan to stabilize Virgin Atlantic without taxpayers’ money. Sources state that he will use the funds raised by selling a £396 mi... Read More

The Electric Cycle Company announces plans to move to bigger premises

Published Date: 2020-07-13         Author: Pankaj Singh

After a successful launch of a £70,000 crowdfunding campaign to renovate its shop and workshop, the Scottish e-bike firm Electric Cycle Company has reportedly announced its plans to move to a 4000 sq. ft., carbon-neutral Edinburgh-based premise, which will be the largest e-bike shop in the UK.... Read More

Cipla launches generic version of Remdesivir at a price of ₹4,000

Published Date: 2020-07-10         Author: Pankaj Singh

Cipla Limited, the multinational pharmaceutical company, has reportedly launched a generic version of the remdesivir drug (Cipremi) at a price of ?4,000 per 100 mg vial, making it among the least priced COVID-19 treatment available across the globe. According to sources familiar with the knowledg... Read More

© 2020 Fractovia. All Rights Reserved