Editor’s Note
This article discusses a potential acquisition in the luxury sector. While based on industry sources, the deal remains under review and is not yet finalized. We will update this story as more information becomes available.
Signs of a tectonic shift are emerging in the jewelry market as French luxury conglomerate LVMH Moët Hennessy Louis Vuitton moves to acquire American jeweler Tiffany & Co.
According to industry sources on the 2nd, LVMH sent a preliminary proposal expressing its acquisition intent to Tiffany earlier this month. Tiffany is reportedly reviewing the proposal with a team of advisors.
LVMH’s move to acquire Tiffany is aimed at strengthening its relatively weak jewelry division compared to competitors, drawing attention to potential changes among other luxury jewelry brands.
While LVMH owns brands like Bulgari, Chaumet, and Hublot, it has been pushing for business expansion as it lags behind competitors in recognition and prestige within the high-end jewelry and women’s watch segments.
Tiffany, founded in New York in 1837, employs over 14,000 people worldwide and operates more than 300 stores. However, it has recently begun to suffer from declining domestic sales due to a slump in foreign tourism to the US, compounded by the US-China trade conflict leading to China imposing high tariffs on US-made products.
Although the specific acquisition terms offered by LVMH have not been disclosed, it is reported that LVMH has invested $14.5 billion (approximately 17 trillion KRW) for the Tiffany acquisition. This marks the largest merger and acquisition (M&A) deal in LVMH’s history.
Previously, LVMH acquired Christian Dior in 2017 for $7 billion (approximately 9.1 trillion KRW) and, prior to that, acquired the Italian luxury brand Bulgari in 2011 for $5.2 billion (approximately 6.05 trillion KRW). Tiffany’s current market capitalization is $11.9 billion (approximately 14 trillion KRW).
Inside and outside the industry, there are claims that this M&A deal could lead to a reshuffling of the jewelry industry. The concern arises from Tiffany, once considered the pride of American jewelry, being absorbed by a larger luxury conglomerate.
Current global luxury jewelry brands include Denmark’s Pandora, Italy’s high jewelry brand Damiani, Austria’s crystal fashion jewelry brand Swarovski, and Monaco’s pearl jewelry brand Mikimoto.
Meanwhile, the LVMH Group, led by Europe’s richest person Bernard Arnault, owns 75 brands, employs 156,000 people, and operates over 4,590 stores. LVMH’s market capitalization is 190 billion euros (approximately 247 trillion KRW).
