They’re just two of the world’s most distinguishing luxury brands — Tiffany & Co. jewelry, sold at the iconic small robins-egg blue boxes – and LVMH, famous for its logo-heavy bag and leather products.
LVMH would like to bolster its standing in jewelry, adding to its $5.2bn purchase of Italian jeweler Bulgari in 2011.
It is regarded as the most effective luxury goods business in the world, and an ambitious one, together with the likes of Christian Dior, Fendi and watchmaker Tag Heuer in its portfolio.
A takeover of Tiffany will be larger than the $7 billion LVMH paid to obtain the Christian Dior tag in 2017.
For 70-year-old Bernard Arnault, the French firm’s founder, chairman, and chief executive officer, it’d be his first significant transaction because of the purchase price of luxury resort series Belmond this past year.
A Tiffany takeover by LVMH may be among the biggest deals in almost any stadium by a European business this past year.
This came on the back of the Fenty Beauty lineup with LVMH — that created 500 million euros in its first complete year of performance.
Tiffany, on the other hand, was struck by a few challenges, for example, reduced tourist spending, a strong US dollar and also a trade war between the united states and China.
LVMH remains profiting from a tide of demand from China for luxury merchandise.
In reality, the organization is doing better than anticipated, with a 19% revenue profit for its key trend and leather industry in the latest quarter.
However, this takeover effort is far from a done deal; a few reports state Tiffany will rebuff the deal.
Presently, Tiffany’s advisers are ongoing to assess the bid.