LVMH in talks to buy Tiffany in US jewellery push
FT, London
Frances LVMH, the worlds largest luxury group by sales, has approached jeweller Tiffany Co about a takeover that would see the US company known for its diamond engagement rings join the owner of Louis Vuitton, Dior and Sephora, according to five people with knowledge of the situation.
A takeover of Tiffany, which has a market capitalisation of $11.9bn, would mark one of LVMHs largest-ever acquisitions. As well as expanding its interests in jewellery, it would also give the Paris-listed company greater exposure to the US, its second biggest region by sales after Asia.
There was no certainty that the talks would lead to a deal. One person said that the unanticipated revelation of LVMHs interest, which was first reported by Bloomberg, may scupper a deal.
An acquisition by LVMH of Tiffany would increase its exposure to the high-end jewellery market, following its $5.2bn purchase of Italian jeweller Bulgari in 2011.
It would also be a homecoming for the chief executive of Tiffany, Alessandro Bogliolo. Mr Bogliolo was previously the chief operating officer of Bulgari and spent 16 years at the company, before leading operations in North America for Sephora and running the fashion brand Diesel.
The takeover approach comes at an uncertain time for Tiffany, which has been dealing with challenges including lower tourist spending, a strong US dollar, and a trade war between the US and China.
