Tiffany and LVMH are rising after striking the biggest luxury deal in history
- Shares in Tiffany & Co and LVMH jumped on Monday after the pair agreed a $16.2 billion merger, the largest luxury deal in history.
- The US jewelry retailer accepted an offer of $135 in cash per share from the French luxury-goods giant, after rejecting a lower offer earlier this month, Reuters reported.
- Watch Tiffany & Co and LVMH trade live.
Shares in Tiffany & Co jumped 6% in pre-market trading in New York, and LVMH stock climbed 2% in Paris, after the pair agreed a $16.2 billion merger, the largest luxury deal in history.
LVMH's offer of $135 in cash per share represents a 7.5% premium to Tiffany's closing price on Friday.
The French luxury-goods giant raised its offer after the US jewelry retailer rejected a bid of $120 earlier this month, Reuters reported.
LVMH owns more than 75 brands including Louis Vuitton, Christian Dior, Fendi, and Moët & Chandon. It expects the addition of Tiffany to bolster its US presence and strengthen its jewelry division, which houses Tag Heuer, Bulgari, and other big names.
While the world leader in terms of luxury brands, LVMH prior to the Tiffany acquisition the company hadn't been as prominent within the jewelry market. According to Bloomberg, the Tiffany acquisition more than doubles LVMH's jewelry scale - especially within American and Asian markets.