US-based jewelry company Tiffany has confirmed that it is currently reviewing a takeover offer of around $14.5 billion from luxury goods firm LVMH.
Both Tiffany and LVMH have confirmed the $14.5 billion takeover offer in separate statements they released on Monday. However, the 182-year-old jeweler Tiffany claims that there are currently no talks about it.
Also known as LVMH Moet Hennessy–Louis Vuitton SE, the luxury goods firm is owned by Bernard Arnault, the richest man in France. The company holds a variety of luxury brands from different categories, including brandy distiller Henessy, fashion house Louis Vuitton, perfume company Givenchy, and Italan luxury brand Bulgari.
LVMH released a statement saying it "confirms that it has held preliminary discussions regarding a possible transaction with Tiffany," but it emphasized that there is no certainty of a deal.
A few hours later, the New York Stock Exchange-listed Tiffany announced that it "has received an unsolicited, non-binding proposal from LMVH" of $120 per share in cash. Prior to the announcements, there have been reports over the weekend that LVMH has made a preliminary offer to Tiffany earlier this month.
If the takeover would be completed, this would be the largest deal LVMH has made since it purchased the the Bulgari brand in 2011 for $5.2 billion.
Michael Hewson, chief market analyst at CMC Markets UK, pointed out: "LVMH's attempt to put a $14.5 billion ring on Tiffany, having already added Bulgari a couple of years ago is likely to take the fight in this sector to its closest rival Richemont, who owns Cartier, and would help LVMH in gaining better access to US markets."
Previously, LVMH opened a factory in South Texas as part of its initiative to capture a bigger market share in the US. The facility was officially inaugurated this month in a ceremony attended by Arnault and US President Donald Trump and his daughter Ivanka.
