LVMH to buy Tiffany for $16.2 bln

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LVMH is splashing out at Tiffany.

The Louis Vuitton owner has agreed a deal to buy the U.S. jeweler.

It will pay 16.2 billion dollars to add the firm to its stable of brands.

That makes it LVMH's biggest ever acquisition.

Jewelry and watches is currently one of the smallest divisions at the luxury colossus.

That's something it wants to change, with analysts saying jewelry is one of the fastest growing bits of the luxury sector.

Founded in New York in 1837, Tiffany is certainly a historic name.

Not many stores get name checked in an Audrey Hepburn movie title.

But in recent years it's struggled to attract millenial shoppers.

It's also seen Chinese consumers retreat from overseas stores to spend more at home.

Now the pair hope joining forces will help LVMH in the U.S., and Tiffany in Asia.

They hope to close the deal in mid-2020.

LVMH shares opened around 1.8 percent higher on Monday (November 25) morning.