【New York, US】LVMH Agrees to Acquire U.S. Global Jewelry Brand ‘Tiffany’ for $16.2 Billion

French fashion group LVMH Moët Hennessy Louis Vuitton has agreed to acquire U.S. jeweler Tiffany & Co. for a total of $16.22 billion (approximately 19.09 trillion won).

LVMH and Tiffany issued a joint statement on the 25th (local time), announcing they had reached an agreement for the transfer of ownership for a total of $16.2 billion. Local media reported that “LVMH’s acquisition of Tiffany will strengthen LVMH’s position in the jewelry sector and enhance its stature in the U.S. market.” Tiffany had previously rejected LVMH’s initial offer of $120 per share, stating it significantly undervalued the company. Following renegotiations, the price was finalized at $135 per share (approximately 160,000 won).
Both parties announced their hope to finalize the acquisition deal by mid-next year. Tiffany added that its board of directors would recommend approval to shareholders.

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.

It is reported that LVMH aims to leverage the brand power of the 182-year-old Tiffany to target consumers in their 20s and 30s in the Chinese market, seeking to expand its jewelry sector.

Founded in New York in 1837 by Charles Lewis Tiffany, Tiffany is famous for its distinctive blue packaging, known as ‘Robin Egg Blue.’ It has grown into a global high-end jewelry brand, currently operating approximately 300 stores worldwide and employing 14,000 people. Its flagship store on Fifth Avenue in Manhattan, New York, is a landmark and served as the setting for American writer 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 spreading Tiffany’s fame.

Tiffany has recently been criticized for failing to properly grasp the trends of young consumers. Additionally, it has been struggling due to the impact of high tariffs imposed by China on U.S. products amid U.S.-China trade tensions, coupled with a decline in domestic consumption due to sluggish foreign tourism in the U.S.
By acquiring the 182-year-old Tiffany, headquartered in New York, USA, LVMH aims to expand in the jewelry and precious metals sector in the Asian and Chinese markets. LVMH is expected to formally launch its offensive in the Chinese market through the Tiffany brand acquisition, following the market trend where Chinese consumers in their 20s and 30s are driving the expansion of the luxury market.
Global consulting firm Bain & Company expects the jewelry market’s growth rate to have surpassed the apparel sector last year and to grow by 7% annually this year.

Led by 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 division, alongside LVMH’s existing jewelry, precious metals, and watch brands Bulgari and TAG Heuer.