Louis Vuitton Moët Hennessy (LVMH) has acquired Tiffany for €14.7 billion.

The French luxury conglomerate will pay $135 per share, valuing the US jewellery retailer at 13 per cent above an initial $120 per share bid.

LVMH said the deal would “transform” its watches and jewellery division, increasing its market share against rival Richemont, and improving its US presence.

Chief executive Bernard Arnault commented: "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."

Tiffany chief executive Alessandro Bogliolo said: “This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming the next generation luxury jeweller."

The transaction has been approved by the boards of directors of both companies, with the Tiffany board recommending that its shareholders approve the deal, which is expected to close in summer 2020.

Elliott Jacobs, EMEA commerce consulting director at LiveArea, commented: “LVMH acquiring Tiffany could represent one of the great shake-ups to the luxury market.

“While it’s in keeping with LVMH’s strategy, the move is a major risk - in the world of digitally agile commerce brands, LVMH is seeking to break the mould."

He explained that Tiffany has an "unparalleled digital presence" for a luxury brand – almost 10 times that of LVMH’s last acquisition, Bulgari.

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