Korea approves LVMH-Tiffany merger
By Kim Jae-heun
Louis Vuitton Korea CEO Thierry Marty
The Korea Fair Trade Commission (KFTC) Wednesday announced its approval of the merger between LVMH-Moet Hennessy Louis Vuitton SE (LVMH) and Tiffany & Co. (Tiffany) here, after saying the French luxury giant's stock purchase of the U.S. jewelry brand does not restrict competition in the local market.
Last Nov. 24, LVMH signed a contract to purchase a full stake in Tiffany and reported their business combination to the antitrust watchdog in March.
The KFTC has been mainly reviewing if the M&A of the two firms will prevent any other players from entering the global high-end jewelry market where their businesses overlap. It concluded that the merger does not restrict competition in the related market and approved the deal as of June 12.
“There are many brands competing in the global high-end jewelry market including those owned by Chinese companies,” a KFTC official said. “Thus, we have concluded that the merger of LVMH and Tiffany will not increase the market concentration here. We also took consideration of prominent competitors in the market including Cartier, Van Cleef & Arpels and Boucheron.”
Like its counterparts around the world, the antitrust watchdog closely reviewed whether this merger could affect other global firms' business here.
If it decides that a merger of two major firms restricts competition in the local market, it can order a corrective measure.
So far, antitrust watchdogs in the United States, Australia, Canada and Russia have also approved the merger of LVMH and Tiffany while those of Europe, China, Japan, Taiwan and Mexico are still reviewing the deal.
LVMH is a French multinational corporation and conglomerate headquartered in Paris that specializes in luxury goods. It operates over 70 brands around the world including those of fashion and leather goods makers Louis Vuitton, Christian Dior and Fendi and high-end cosmetic brands Guerlain and Make Up For Ever.
It also owns champagne producer Moet & Chandon and cognac producer Hennessy as well as watch and jewelry brands like Bulgari, Chaumet and TAG Heuer.
Tiffany is an American luxury jewelry and specialty retailer headquartered in New York City. It sells jewelry, sterling silver, fragrances, watches and personal accessories.