LVMH Moët Hennessy has announced it will be acquiring American jewelry company, Tiffany & Co. for $16.2 billion, or $135 a share in cash.
The massive deal was made in efforts to give the French luxury goods giant more access to the U.S. consumers in the luxury market.
LVMH chairman and chief executive officer, Bernard Arnault, noted that the company will be focused on transforming “LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Houses.”
“We have immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our maisons,” Arnault said in a statement.
Following the deal that was announced on Sunday, shares of Tiffany have increased over hopes of a higher priced deal, while shares closed on Friday at $125.51.
Early Tuesday morning, CNN reported that Arnault could surpass Jeff Bezos as the world’s richest person thanks to the rise LVMH’s stock. According to Forbes’ Real-Time Billionaires List, Arnault’s net worth sky rocketed more than 1% on Monday and another 3% on Tuesday.
LVMH’s decision to buy Tiffany & Co. follows its successful venture with Rihanna to launch a luxury fashion house with the singer. The deal, who made Rihanna the first-ever black female designer at LVMH, also marked the first time Arnault has launched an original new house since Christian Lacroix in 1987.