【Paris, Franc】LVMH to Acquire U.S. Jewelry Brand Tiffany for $16.2 Billion, Targeting China’s Young Consumers

(PARIS=Yonhap News) Correspondent Kim Yong-rae — French luxury conglomerate LVMH Moët Hennessy Louis Vuitton and U.S. jewelry company Tiffany & Co. announced on the 25th (local time) that they have reached an agreement for LVMH to acquire Tiffany for a total of $16.2 billion (approximately 19 trillion won).

LVMH aims to expand its jewelry market share by targeting consumers in their 20s and 30s in the Chinese market, leveraging the brand power of the 182-year-old Tiffany.
In a joint statement, LVMH and Tiffany announced the agreement on the $16.2 billion acquisition total, stating, “LVMH’s acquisition of Tiffany will strengthen LVMH’s position in the jewelry category and transform Tiffany into an iconic brand within LVMH’s portfolio.”
Tiffany had previously rejected LVMH’s initial offer of $120 per share, arguing it significantly undervalued the company. Following renegotiations, the two sides finalized the acquisition price at $135 per share (approximately 160,000 won).
Both parties announced they hope to complete the acquisition by mid-next year. Tiffany added that its board of directors will recommend that shareholders approve the deal.
The total acquisition amount of $16.2 billion marks the largest acquisition in LVMH’s history, as the group has aggressively expanded by acquiring numerous fashion and luxury brands.

Founded in 1837 in New York by Charles Lewis Tiffany, Tiffany is famous for its distinctive “Robin Egg Blue” packaging and has grown into a global high-end jewelry brand, currently operating over 300 stores worldwide and employing 14,000 people. Its flagship store on Fifth Avenue in Manhattan is a New York landmark and served as the setting for Truman Capote’s novel “Breakfast at Tiffany’s.” The novel was adapted into a film of the same name starring Audrey Hepburn in 1961, further popularizing the Tiffany name.
However, Tiffany has recently been criticized for failing to grasp the trends of young consumers. In addition to being impacted by the U.S.-China trade conflict and high tariffs imposed by China on U.S. goods, the company has struggled with weak foreign tourism in the U.S. and reduced domestic consumption.

By acquiring the 182-year-old Tiffany, headquartered in New York, LVMH aims to expand in the jewelry and precious metals (jewelry) sector in Asia, particularly the Chinese market. The jewelry segment is considered one of the fastest-growing areas in the luxury market.
LVMH is expected to formally launch its offensive in the Chinese market through the acquisition of Tiffany, following the market trend where Chinese consumers in their 20s and 30s are driving the expansion of the luxury market.
According to global consulting firm Bain & Company, the growth rate of the jewelry market surpassed that of the apparel sector last year, and the jewelry market is expected to grow by 7% annually this year.

Led by Chairman Bernard Arnault, Europe’s wealthiest individual, LVMH is one of the world’s largest fashion conglomerates, owning numerous high-end fashion and luxury brands such as Louis Vuitton, Fendi, Christian Dior, Givenchy, and Bulgari. However, LVMH has been evaluated as having a weaker position in the jewelry market compared to its competitor Richemont Group, which owns Cartier.
Tiffany has been selected as a key card to strengthen LVMH’s previously weak jewelry segment, alongside LVMH’s existing jewelry, precious metals, and watch brands like Bulgari and TAG Heuer.
Immediately after the announcement of the acquisition terms agreement, LVMH’s stock price surged by 2% during intraday trading.