Luxury goods giant LVMH (MC.PA) has agreed to buy one of the world’s most iconic jewellers — Tiffany — for $16.2bn (￡12.6bn).

LVMH, which owns 75 prestigious brands including Christian Dior and Givenchy and has 4,590 stores worldwide, confirmed in a statement that it has agreed to buy the jeweller for $135 (￡105) per share in cash.

Bernard Arnault, France’s richest man and owner of LVMH, said in a statement: “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.

“We have an immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons. We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come.”

In 2018, LVMH made €46.8bn (￡401.bn, $51.5bn) worth of revenue. LVMH said in its statement today that the acquisition will help it increase its presence in the US and “strengthen” its position in jewelry.

Tiffany has been around for more than 180 years and was key in establishing the diamond ring as “an enduring symbol of commitment.” Even the blue Tiffany box is recognised across the globe worldwide as “an icon of refinement and desirability.”

The deal has been approved by the boards of directors of both companies and “the Tiffany Board of Directors recommends that Tiffany shareholders approve the transaction with LVMH.”

The transaction is expected to close in the middle of 2020 and is subject to conditions, including approval from Tiffany’s shareholders and the receipt of regulatory approvals.

“Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth,” said Alessandro Bogliolo, CEO of Tiffany.

“This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming the Next Generation Luxury Jeweler. As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”