LVMH, the world’s leading luxury retailer, will purchase Bulgari for $3.4 billion.
Italy’s Bulgari makes high end jewelry, and the move will strengthen LVMH’s jewelry and watches division – areas where LVMH was relatively weak.
Bulgari was founded in 1884, and is the 3rd largest jewelry maker in the world, behind Cartier and Tiffany.
The deal will give shareholders a 63% premium on Bulgari’s price as of last Friday.
The move continues LVMH’s expansion trend, including recently purchasing greater shares of Hermes.