Louis Vuitton buys jeweller Tiffany for $16bn

The world’s biggest luxury goods company is buying US-based jeweller Tiffany & Co for more than $16bn (£12.5bn).

The deal gives LVMH’s billionaire owner Bernard Arnault a bigger slice of one of the fastest growing luxury sectors.

He said Tiffany had an “unparalleled heritage” and fitted with its other brands, Louis Vuitton and Bulgari.

Tiffany has suffered falling jewellery sales, hit by lower spending by tourists and a strong US dollar.

Tiffany is something of a New York institution and its flagship store is next to Trump Tower on 5th Avenue. The company hit global fame after being featured in the 1961 Audrey Hepburn film Breakfast at Tiffany’s.

Founded in 1837, it employs more than 14,000 people and operates about 300 stores.

Mr Arnault has coveted the business since buying the Bulgari brand in 2011 for $5.2bn. The Tiffany acquisition is LVMH’s biggest deal.

“We have an 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 [brand houses],” he said.

LVMH has 75 brands, 156,000 employees and a network of more than 4,590 stores. Other brands include Kenzo, Tag Heuer, Dom Pérignon, Moet & Chandon, and Christian Dior.

“We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come,” Mr Arnault said.

Known for its signature robin’s egg blue packaging, Tiffany rebuffed LVMH’s initial advance made just five weeks ago, arguing it significantly undervalued the company.