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French luxury giant LVMH has completed its purchase of US jeweller Tiffany, having previously sought to walk away from the deal. The firm has named a new team to lead Tiffany, which includes a son of LVMH chief executive Bernard Arnault.

It is paying $15.8bn (£11.6bn) for the firm – a slight discount from the initially announced $16.2bn. The deal will help LVMH to expand into the jewellery sector – a fast-growing area of the luxury goods market.

LVMH first announced the acquisition more than a year ago. But progress stalled as the pandemic’s impact on business reportedly soured Mr Arnault’s view on the price initially agreed.

Tiffany, credited with inventing the modern engagement ring and immortalised in the Breakfast at Tiffany’s film starring Audrey Hepburn, ultimately sued LVMH to force the deal to go ahead.

Analysts expect that LVMH, home to brands including Fendi, Louis Vuitton and Veuve Clicquot champagne, will review everything from Tiffany’s network of stores to strategies in areas such as online sales as it pushes to revive the brand.

It is expected to try to raise its profile among younger buyers and customers in China. French billionaire Mr Arnault said he was “optimistic about Tiffany’s ability to accelerate its growth” and committed to supporting the firm.

“Tiffany is an iconic brand and a quintessential emblem of the global jewellery sector,” he said.

LVMH said Anthony Ledru, who ran Louis Vuitton in the United States and previously worked at Tiffany and rival jeweller Cartier, would become chief executive immediately. Also joining the firm as executive vice president for product and communication is Mr Arnault’s 28-year-old son Alexandre, who previously ran LVMH’s luggage label Rimowa.

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