LVMH Moët Hennessy Louis Vuitton announced on Monday that it has agreed to acquire Tiffany & Co. (NYSE: TIF) for $135 per share in cash, in a transaction with an equity value of approximately EUR 14.7 Billion or USD 16.2 Billion.

Tiffany shares rose by 5.8% on Monday morning following the announcement.

Bernard Arnault, Chairman and Chief Executive Officer of LVMH, commented: “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.”

LVMH is one of the largest global luxury conglomerates, including brands such as Louis Vuitton, Moët & Chandon, Dom Pérignon, Hennessy, Christian Dior, Fendi, Bvlgari, and TAG Heuer.

The acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the U.S. The addition of Tiffany will transform LVMH’s watches and jewelry division and complement LVMH’s 75 distinguished Houses.

The agreement between the two parties is USD 15.00 higher than the original USD 120.00 per share offered back in late October. Many analysts believed that LVMH would need to offer more in order to compete against other companies in the bidding such as Richemont, who owns Cartier.

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

The transaction is expected to close in the middle of 2020.