Photo: VCG

LVMH and US jewelers Tiffany announced Monday a $16.2 billion tie-up that is the French luxury group's biggest-ever acquisition and will bolster its presence in the United States.

The deal comes after LVMH spent more than a month wooing Tiffany, the most iconic of US luxury brands, known for its wedding rings and diamonds.

The companies said in a statement they "have entered into a definitive agreement whereby LVMH will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately 14.7 billion euros or $16.2 billion."

The deal adds Tiffany to LVMH's stable of luxury brands and will strengthen its position in the jewelry sector.

"We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewelry world, to the LVMH family," said the group's chief executive, Bernard Arnault.

Such a deal has been seen as a way forward for Tiffany as the company has trailed rivals in terms of sales growth in recent years.

"Following a strategic review that included a thoughtful internal process and expert external advice, the Board has concluded that this transaction with LVMH provides an exciting path forward..." said Tiffany's board chairman, Roger Farah. 

The addition of Tiffany to LVMH's jewelry holdings will help it in its rivalry with Swiss-based Richemont, which holds Cartier among other brands, as well as lift LVMH's stature in the important American market.