The luxury brand giant behind Louis Vuitton is to buy the jewellery legend Tiffany in a deal worth $16.2bn (£12.6bn).
The agreed takeover offer by LVMH of $135 (£105) a share for the 182-year-old firm is far higher than the initial proposal of $120 (£93) made last month.
The move adds US-based Tiffany to a stable of high-end brands, including Christian Dior, Givenchy and Moet & Chandon.
It comes eight years after LVMH – controlled by French billionaire and Europe’s richest man Bernard Arnault – bought Italian jeweller Bulgari for €3.7bn (£3.2bn) 2011.
“The acquisition of Tiffany will strengthen LVMH’s position in jewellery and further increase its presence in the United States,” the companies said in a joint statement.
Tiffany boss Alessandro Bogliolo said the transaction would “provide further support, resources and momentum”.
LVMH is controlled by the French billionaire Bernard Arnault
The companies said they expected to close the deal in mid-2020, subject to the approval of regulators and shareholders.
Tiffany – made famous by the 1961 film Breakfast at Tiffany’s starring Audrey Hepburn – has been struggling with stagnating sales as China’s economic woes have weighed on spending by Chinese tourists, who make up a large proportion of luxury goods shoppers.
The strong dollar has also made Tiffany goods more expensive for consumers outside the US.
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