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Bloomberg
LVMH, the French owner of Louis Vuitton, is exploring a takeover of Tiffany & Co to expand in the US jewelry market, according to people familiar with the matter.
The luxury group is holding talks with Tiffany, though there’s no guarantee an agreement will be reached, said the people, who asked not to be identified because discussions are private. Tiffany’s shares have gained 22% this year, valuing it at $12 billion. LVMH has risen 49%, giving it a market capitalization of about $215 billion.
Representatives for Tiffany and LVMH declined to comment.
An acquisition of Tiffany would be the biggest ever by LVMH, higher than the $7 billion it paid for the rest of Christian Dior in 2017, and potentially among the largest deals by a European company this year. It would be Chairman Bernard Arnault’s first major transaction since the purchase of luxury hotel chain Belmond last year.
A deal would further diversify the conglomerate, which has been riding a wave of luxury demand in China but faces risks including that country’s trade war with the US and the anti-Beijing protests in Hong Kong. The company nonetheless beat analysts’ estimates with a 19% sales gain for its key fashion and leather business in the most recent quarter.
With brands ranging from cosmetics retailer Sephora and Hublot watches to Hennessy cognac to Dom Perignon champagne, LVMH is looking to sharpen its focus further on the United States.