This Is Luxury Industry's Biggest Deal Ever

French luxury giant LVMH Moet Hennessy Louis Vuitton said Monday it has reached a deal to buy US-based jewelry legend Tiffany & Co. for $16.2 billion. LVMH said in a statement that the deal values the 180-year old Tiffany and its 300 boutiques worldwide at $135 a share. The agreed deal is higher than the $14.5 billion cash offer LVMH made last month. The conglomerate said both companies' boards approved the deal and hope to finalize the takeover in 2020 subject to the approval of regulators and Tiffany shareholders. LVMH says the deal will strengthen its position in high-end jewelry and in the US market.

LVMH already owns 75 brands including Christian Dior, Fendi, and Givenchy as well as watchmaker Tag Heuer. The New York Times notes that this is the biggest-ever deal in the luxury sector. Tiffany says the deal will ensure the company's long-term sustainability. Tiffany, which is trying to transform its brand to appeal to younger shoppers, could use a company with deep pockets to help expand its business, the AP reports. The offer comes as luxury goods companies have been wrestling with changing habits of shoppers who are increasingly buying online.

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