How LVMH Will Benefit From The Acquisition Of Tiffany & Co. For $ 16.2 Billion

How LVMH Will Benefit From The Acquisition Of Tiffany & Co. For $ 16.2 Billion
How LVMH Will Benefit From The Acquisition Of Tiffany & Co. For $ 16.2 Billion

Video: How LVMH Will Benefit From The Acquisition Of Tiffany & Co. For $ 16.2 Billion

Video: What Does Tiffany Add to LVMH? 2022, November
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The parties came to an agreement amid rumors and speculation that surfaced throughout the month after the deal was leaked to the media in October, The Business of Fashion reports. As Reuters reported, the French company originally offered Tiffany & Co. $ 14.5 billion ($ 120 per share), but was refused. As a result, rates were raised to $ 135 per share, and the deal reached $ 16.2 billion.

LVMH is the world's largest luxury goods manufacturer with a market capitalization of over $ 220.6 billion. Tiffany & Co.'s portfolio of watch and jewelry brands to add to its list includes Bvlgari, Chaumet, Fred, as well as Hublot, Zenith and TAG Heuer.

What does this deal mean? For the luxury giant LVMH, this is a clear and significant strengthening of its positions in the watch and jewelry segment, in fact, the only one in which the holding does not occupy a leading position. Watches and jewelery sales now account for 9% of LVMH's total sales. A noticeable growth of 12% in 2018 compared to 2017 is attributed to the active sales of Bvlgari, another jewelry and watch brand acquired by the concern in 2011 for $ 5.2 billion.

Tiffany & Co Jewelry
Tiffany & Co Jewelry

Tiffany & Co Jewelry © press service

The acquisition of Tiffany & Co., the largest and oldest American jewelry brand with one of the most extensive and successful retail chains in the world, will help LVMH expand its presence in North America and Asia, as well as move closer to its main rival in the jewelry and watchmaking business. the Richemont group, which owns Cartier, Van Cleef & Arpels, Montblanc, Vacheron Constantin.

Сделка LVMH и Tiffany & Co. может внести изменения в список самых богатых людей мира. В настоящее время его лидерами числятся глава Amazon Джефф Безос, чей капитал превышает $110 млрд, и сооснователь Microsoft Билл Гейтс с состоянием в $107 млрд. Исполнительный директор концерна LVMH Бернар Арно при успешном завершении сделки сможет обойти высокопоставленных конкурентов: сейчас у Арно в накоплениях $106 млрд и в рейтинге самых богатых людей мира он занимает третье место. Троица Безос-Гейтс-Арно сильно опережает других мегамиллиардеров в рейтинге. Например, Уоррен Баффетт, владелец холдинговой компании Berkshire Hathaway, располагает состоянием в $86 млрд, глава Facebook Марк Цукерберг - $75 млрд, руководитель Oracle Ларри Эллисон и владелец Zara Амансио Ортега - по $70 млрд.

Founded in 1837, Tiffany & Co. offers a wide and varied assortment, from $ 200 sterling silver to unique multi-million Blue Book jewelry. The company has a high degree of recognition and is in good standing with the millennial generation.

“Buyers don't care about stockholders,” Alessandro Bololo, CEO of the brand, reassured Tiffany fans. “They are only interested in your product, your brand, its sustainable development, and the beauty of design. This is what brings real success. " The source also reports that Tiffany's global sales fell 3% to $ 2.1 billion in the first half of this year.>

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