French luxury giant LVMH Moet Hennessy Louis Vuitton says it has reached a deal to buy US-based jewelry legend Tiffany & Co for $US16.2 billion ($AUD 23.8 billion).
LVMH said in a statement Monday that the deal values the 180-year-old Tiffany and its 300 boutiques worldwide at US$135 a share.
It says both companies’ boards approved the deal and hope to finalise the takeover in 2020 subject to the approval of regulators and Tiffany shareholders.
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LVMH says the deal will strengthen its position in high-end jewelry and in the US market.
Tiffany says the deal will ensure the company’s long-term sustainability.
LVMH already owns 75 brands and is run by one of the wealthiest people in the world, Bernard Arnault.
Mr Arnault is the chairman and chief executive of LVMH and is currently the third richest person in the world with a net worth of $US102 billion.