Daniel Pfund, Senior Financial Analyst
The world of branded jewelry may soon see a significant change. Indeed, three weeks ago, the French group LVMH confirmed that it was in discussion with the American Tiffany to buy it back for $14.5 billion. This week, LVMH reportedly proposed $16 billion to obtain a final agreement and a confidential right of access to Tiffany’s accounts. This acquisition makes sense for LVMH, because its “watches & jewelry” division is the smallest in the group.
If this acquisition is confirmed, it would propel LVMH into first place worldwide and relegate Richemont (which owns Cartier) to second place. The branded jewelry market is estimated at more than $44 billion in sales per year. Currently, Richemont has a market share of 14.8%, Tiffany 10.8% and LVMH 7.6%.