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LVMH’s $16 Billion Tiffany Takeover ‘A Smart Move’: Street Wrap

  • Purchase allows French conglomerate to bulk up in jewelry
  • Deal may lead to renewed luxury M&A speculation: Jefferies
Jewelry is displayed in a window of the Tiffany & Co. store on Fifth Avenue in New York.

Jewelry is displayed in a window of the Tiffany & Co. store on Fifth Avenue in New York.

Photographer: Mark Kauzlarich/Bloomberg

LVMH’s $16 billion purchase of U.S. jeweler Tiffany won the applause of analysts and investors, who said the deal allows the French conglomerate to bulk up in jewelry, threatening the dominance in the field of Cartier owner Richemont.

“It’s a smart move” that will help LVMH “launch a more concerted attack on the Asian millennial market,” Flavio Cereda, analyst at Jefferies International Ltd., wrote in a note. The deal also will likely lead to renewed speculation about other potential tie-ups among luxury players, including Richemont, privately held Chanel and Gucci-owner Kering SA, Cereda wrote.