LVMH Nears Deal to Acquire Tiffany for $16.3 Billion
The boards of the two luxury companies are meeting Sunday to approve the deal, with an announcement set for Monday
LVMH Moët Hennessy Louis Vuitton LVMUY 0.18% is nearing a deal to buy famed jeweler Tiffany TIF -0.78% & Co. for more than $16 billion, according to people familiar with the matter.
The companies have reached a preliminary agreement on a deal that values Tiffany at $135 a share, or about $16.3 billion, the people said.
The boards of the luxury companies are meeting Sunday to finalize the deal and unless there is a last-minute hitch, it is expected to be announced Monday if not sooner.
The companies have been discussing a deal since LVMH last month privately approached Tiffany with an offer to buy the upscale jeweler for $120 a share.
Shares of New York-based Tiffany have surged on hopes of a deal at a higher price, closing Friday at $125.51. The shares traded near $140 in the middle of last year.
LVMH has a market value of nearly €200 billion ($220 billion). Buying Tiffany would increase the Paris-based company’s exposure to jewelry, one of the fastest-growing businesses in the luxury sector.
The Financial Times earlier reported that a deal is close.