One month after the French luxury behemoth made news by submitting a $14.5 billion bid to buy iconic American jeweler Tiffany & Co., the holding company has finally got its brand, according to the Financial Times. LVMH has reportedly “clinched” the deal after upping its offer to $16.2 billion.
The deal is the largest ever in the luxury sector, according to the Financial Times. Despite this, some analysts have questioned the move since news of the approach first broke last month, wondering why LVMH would want to purchase a brand no longer considered top-tier, especially since it already purchased Bulgari for $5.2 billion in 2011. But after a rough patch, Tiffany is starting to turn around thanks in part to its new CEO, Alessandro Bogliolo, who has been at the helm since 2017. He spent 16 years in various executive roles at Bulgari, both before and after its LVMH acquisition.
The acquisition will give LVMH a stronger foothold in the jewelry market, allowing it to better compete with the likes of Switzerland’s Richemont Group in one of the fastest-growing sectors of the luxury market. The deal will also increase LVMH’s presence in the United States, its second-biggest market internationally after Asia. Last month’s opening of a Louis Vuitton factory in Texas made clear that this America is a big priority for the French house.