The world's top luxury goods company, Louis Vuitton Moët Hennessy (LVMH), has agreed to buy US-based jeweller Tiffany&Co for $16.2 billion.
"The acquisition of Tiffany will strengthen LVMH's position in jewellery and further increase its presence in the United States," LVMH and Tiffany said in a joint statement.
Under the deal, each Tiffany share is valued at $135 in cash and is higher than the initial offer of $120 per one share - which valued the business at $14.5bn. The companies said that the deal is expected to be closed in mid-2020.
LVMH is run by France's richest man, Bernard Arnault, and has 75 brands, 156,000 employees and a network of more than 4,590 stores. Other brands include Christian Dior, Kenzo, Dom Pérignon, Tag Heuer, and Moet & Chandon.
Tiffany&Co was founded in New York in 1837 and is best known for its signature robin's-egg blue packaging. The Louis Vuitton brand is famous for its handbags.