Tforebnucyhulusxjuerwyegllreorutpifflavnmy &H Coffoers
NEW YORK: Louis Vuitton owner LVMH has approached Tiffany & Co with an acquisition offer, people familiar with the matter said on Saturday, at a time when the US luxury jeweller grapples with the impact of tariffs on its exports to China.
LVMH, which has for years been looking for ways to expand in the US market, submitted a preliminary, nonbinding offer to Tiffany earlier this month, one of the sources said.
Tiffany has hired advisers to review LVMH’S offer but has not yet responded to it, and there is no certainty that it will negotiate a deal, one of the sources added.
The exact price that LVMH was offering to buy Tiffany, which has a market capitalisation of $11.9 billion, could not be learned.
Bloomberg News reported earlier on Saturday that LVMH was holding talks with Tiffany.
LVMH, which is behind brands such as Fendi, Christian Dior and Givenchy, as well as Veuve Cliquot champagne, has stood out for several years as one of the top performers in the upscale retail sector, where not all labels are benefiting to the same degree from booming Chinese appetite for branded goods.
Tiffany, on the other hand, has not been as resilient. Beyond the tariffs that have been triggered by the trade war between the United States and China, a lower Chinese domestic sales tax has also contributed to double-digit decreases in its sales to Chinese tourists in the United States and in other destinations.
High-end brands have also long relied on Hong Kong as a major shopping hub which draws visitors from mainland China in particular, and four months of prodemocracy demonstrations are starting to take their toll.