LVMH Just Bought Tiffany & Co.
Ever since rumors of the French magnate’s interest in the American fine jewelry brand started circulating earlier this fall, the potential LVMH Tiffany’s acquisition was a hot topic on the luxury market. But with a new $16.2 billion cash deal, Tiffany’s is the latest entity to join the family of Louis Vuitton, Dior, Hennessy, and others — dominating markets across all categories. The earlier proposal is now a sealed deal — ring and all.
The French company initially offered a price valuing $2 billion less, but ultimately increased the offer as Tiffany’s has been on its radar ever since the 2011 purchase of Bulgari. The situation, however, is not ideal — Tiffany’s has been struggling with their home and foreign market for years now. In fact, most of the prized pieces are in their Chinese market. It is up to LVMH to revamp the image and re-evaluate their strategies for the new decade.