By Lenore Fedow
lenore.fedow@nationaljeweler.com
Five candy-colored golden rings from Tiffany’s recent holiday catalog ($210,000). The jeweler has scheduled a shareholder vote to approve its acquisition by luxury conglomerate LVMH.
New York—Tiffany & Co. shareholders will soon have their say about the jeweler’s pending acquisition by LVMH.

The French luxury titan proposed a deal this November to acquire the American jeweler for $16.2 billion.

The acquisition would bring Tiffany under LVMH’s umbrella and add to its stable of watch and jewelry brands, which already includes Bulgari, TAG Heuer and Hublot.

The addition of Tiffany to the portfolio is expected to strengthen LVMH’s position in the jewelry market and bolster its presence in the United States, LVMH said.
RELATED CONTENT: What Tiffany’s Acquisition Means for the Jewelry Industry
The jeweler’s position in the U.S. is a strength, Bernstein analyst Luca Soltani said, but he also noted that perhaps, “LVMH would want to upgrade the Tiffany flagship stores, and streamline the rest of the retail network.” LVMH’s focus may shift to Asia, where Jefferies analyst Flavio Cereda said the company could leverage the strength of the Tiffany brand to bolster its position with millennials.

Tiffany reported double-digit growth in mainland China and highlighted higher spending by locals in its third-quarter results.

A special meeting of Tiffany’s stockholders is scheduled for the morning of Feb. 4 at its corporate offices on Fifth Avenue in New York, according to a recent filing with the Securities and Exchange Commission.

The board of directors of both Tiffany and LVMH already have approved the acquisition and recommended shareholders approve it as well.

The deal is expected to close in mid-2020, subject to stockholders’ approval as well as regulatory clearances and other customary closing conditions.



Get the Daily News >
National Jeweler

Fine Jewelry Industry News

Since 1906, National Jeweler has been the must-read news source for smart jewelry professionals--jewelry retailers, designers, buyers, manufacturers, and suppliers. From market analysis to emerging jewelry trends, we cover the important industry topics vital to the everyday success of jewelry professionals worldwide. National Jeweler delivers the most urgent jewelry news necessary for running your day-to-day jewelry business here, and via our daily e-newsletter, website and other specialty publications, such as "The State of the Majors." National Jeweler is published by Jewelers of America, the leading nonprofit jewelry association in the United States.