LVMH Moët Hennessy – Louis Vuitton SE, the world‘s largest luxury goods giant has reached an agreement with the board of Tiffany & Co, in a move that will see the company purchase the world most iconic jeweler.
This week Global business corridors were awash with the historic acquisition which will see the French multinational luxury goods conglomerate cement its position as a universal elite’s goods powerhouse. The Paris headquartered empire run by Billionaire Bernard Arnault will bring the iconic American jewelry brand into its fold at a cost of over $16 billion, making it the biggest luxury brand acquisition ever and adding to the firm’s portfolio, which includes Louis Vuitton and Sephora.
The watershed deal was confirmed by LVMH on Monday. According to Forbes LVMH will acquire Tiffany for $135 per share in cash, for a total of $16.2 billion ,almost $2 billion higher than the initial bid that LVMH made for the luxury jeweler in October. Tiffany will sit among LVMH’s 79 brands, in its watches and jewelry division. Global analysts say the deal will strengthen LVMH’s position in North America and build on its foundation in the jewelry market. The deal is expected to go through in the middle of 2020, LVMH said.
Shares of the Paris-based fashion house were up 2% on Monday morning, while Tiffany shares were up 6% in premarket trading. LVMH Chief Executive Officer & Chairman Bernard Arnault told global media houses that his company was excited to bring Tiffany into its fold. “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.”
New York Times says the acquisition will give LVMH a bigger foothold in the United States, as well as help Tiffany in Europe and China. It will also cement the status of Bernard Arnault, the LVMH chairman and chief executive, as the most acquisitive deal maker in the luxury business.
TIFFANY & BOTSWANA
LVMH’s acquisition of Tiffany & Co makes the Benard Anault run conglomerate one of the most important businesses in Botswana major economic sectors. Tiffany & Co is one of the major buyers of Botswana’s polished diamonds. In 2011 Tiffany opened a full diamond polishing and sorting factory in Botswana, valued at $4.8 million. In January this year the 182 year old American Jeweller in a bid to increase its transparency and raise ethical jewelry standards across the industry announced that it would expand its diamond polishing operations in Africa, particularly Botswana.
Botswana, the world's largest diamond producer after Russia, is the only African country where Tiffany & Co both buys and manufactures its stones. About 80% to 90% of Tiffany's polished diamonds are acquired and manufactured through its Antwerp-based subsidiary, Laurelton Diamonds, which sources stones mined by De Beers from their operations in Botswana, Canada, Namibia, South Africa as well as Russian giant Alrosa , amongst others. Laurelton has manufacturing operations in Belgium, Botswana, Mauritius, Vietnam and Cambodi.
MASISI’S VISIT TO TIFFANY
Early this year President Masisi visited Tiffany & Co headquarters in New York and held talks with the company executives. He noted that Tiffany will continue being Botswana‘s major trading partner in the diamond business. Masisi’s visit to Tiffany was just a few months after Tiffany & Co Chief Executive Officer, Alessandro Bogliolo visited Botswana.
While in Botswana Bogliolo paid a courtesy call on President Masisi where he highlighted that his company is what it is because of quality and ethically sourced diamonds mined in Botswana. Tiffany & Co started buying Botswana diamonds 50 years ago and had been operating polished factories in Botswana for the past 12 years employing about 200 people majority of which are citizens.
TIFFANY TAKEOVER MAKES BERNARD ARNAULT SECOND RICHEST PERSON ON EARTH
According Forbes, Bernard Arnault, Chairman and CEO of LVMH (LVMHF), is now worth nearly $108 billion.Arnault's net worth jumped more than 1% Monday and nearly another 3% Tuesday along with LVMH's stock following his company's agreement to buy Tiffany (TIF) for more than $16 billion.
Arnault and his family own more than 47% of the French luxury goods giant. The spike in LVMH shares puts Arnault just ahead of Microsoft (MSFT) co-founder Gates, who has a net worth of $107 billion, and trailing only Amazon (AMZN) CEO Bezos, who tops the Forbes list with a fortune of just over $110 billion.
LVMH’S TOURISM INTERESTS IN BOTSWANA
Having clinched on a lucrative value chain stake in Botswana’s diamond industry LVMH Moët Hennessy – Louis Vuitton SE now has billion dollar interests in Botswana’s two major economic sectors. Early this year Botswana’s Competition Authority approved an acquisition by the French conglomerate.
The billion dollar global powerhouse acquired Belmond Botswana, a company that operates Eagle Island Lodge which is situated in the Okavango Delta in Xaxaba Island. The lodge is Botswana’s host of the world leading personalities, musicians, billionaires, royals and business people who visit the tourists’ attraction country.
Early this year LVMH completed acquisition of Belmond Group for $25.00 per Class A share in cash mirroring equity value of $2.6 billion in transaction and $3.2 billion in enterprise value. This transaction directly gave LVMH full ownership of three safari lodges in Botswana being Belmond Kwai River Lodge, Belmond Savute Elephant Lodge and the Belmond Eagle Island Lodge.
Prices for cereals or staple foods in Botswana and other Southern African countries continue to rise at a slower pace, following trends in the global markets, according to the latest November 2022 Food Price Monitoring and Analysis by Food Agricultural Organization (FAO) of the United Nations.
Running a digital businessMTN Business Solutions Botswana, popularly known as MTN Business is an Internet Service Provider. We are a subsidiary of MTN Group Limited, a multinational telecommunications Group headquartered in South Africa, which operates in 19 markets across Africa and the Middle East.
More and more, clients are looking for ways to keep their staff productive in a dynamically changing business environment. Whether your people are working from home, the office or abroad, there is a growing recognition that digitising your operations can offer unprecedented commercial value in flexibility, productivity and growth. This new, digital reality means that it is more important than ever to stay agile – if there is anything that can slow a business down, it is being burdened by othatld technology.
Having made substantial investments in fibre technology, high-speed terrestrial and undersea networks and new frequency spectrum across the markets wherein it operates, MTN is perfectly positioned to respond to this shift in the market.
A few years ago, MTN also made the decision to build an IP capable radio network for its mobile services, giving its core network the ability to seamlessly integrate with enterprise IP networks. The mobile towers deliver services to enterprise clients absolutely anywhere it has a network, shortening the last mile and removing complexity and cost.
Now there is increasing demand from clients to connect their remote sites in all areas, including rural and semi- rural. MTN has assisted clients with overcoming this connectivity hurdle, enabling their staff to get the job done wherever they are.
For MTN, the focus has shifted from just being a core telecommunications services provider, towards also becoming a technology solutions provider. The service offering now also includes Unified Communications, Data Hosting and Cloud Solutions, Security-As-A-Service and Managed Network Services. The scope has changed to being client and industry specific, so the requirements and service portfolio vary from one client to the next. The expectation is that a company like MTN must respond to these challenges, helping clients to get business done better as they shift from old to new technologies.
As many businesses continue to grapple with a digitally dynamic world, they face new challenges that have to be solved. This environment will benefit those that are more digitally enabled and agile. It is a brave new world that will favour online over on-site, wireless over wired and fluid over formulaic. Businesses will seek out partners and suppliers that are every bit as flexible and forward-looking as they are.
Ultimately, clients need partners like MTN Business that will invest in infrastructure, deliver the services they require, have market credibility, are financially sound and have a long-term commitment to their market presence.
Botswana Institution Of Engineers (BIE), has last week hosted a gala dinner in which they appreciated engineers who worked tirelessly and with dedication for 10 years from 1983 to steer the BIE to its current status.
The event that was held at the Phakalane Golf Estate had brought together young, experienced and veteran engineers and was held under the theme “Vitalize the dignity and eminence of all professional engineers”.
Explaining the theme, the institution’s treasurer, Thanabalasingam Raveendran said that engineers were looked upon reverentially with respect as the educated but with time it seems to have deteriorated. He indicated that there is a need to change the narrative by all means.
“The BIE exists for the welfare and the betterment of us Botswana engineers, we need to recognize specialised units within our Institution. We Engineers strongly believe in Engineers make it happen” Raveendran said.
He indicated that under the theme they appeal to all engineers to energize, to attain quality of being worthy of honour and respect and to achieve recognized superiority amongst the Society.
Raveendran stated that engineers need to ensure their end product is of good quality satisfying the end users expectations and engineers must be honest in their work.
“Approximately 8000 engineers registered with Engineering Regulatory Board (ERB) are not members of the BIE, engineers need to make every effort to recruit them to BIE” he said.
He alluded that BIE being a society, it currently needs to upgrade itself at par with professional institutions elsewhere like the UK and USA.
He further stated that BIE has to have engineering units of specialised disciplines like Civil/Mechanical/electrical etc
“As President Masisi indicated in his inaugural speech, the young people, who make 60 percent of the population of this country, are the future leaders and therefore investing in them is building the bridge to the future” said Raveendran
Kandima indicated that BIE has a memorandum of Understanding with Engineers Registration Board (ERB), where BIE is a recognised provider of CPD training, mentorship programmes and more importantly IPD undertaking to upgrade the skills and know-how of our engineers.
“For us to achieve our mandate and make worthwhile changes to engineering in Botswana, we have to be totally focused and act with intent” said Kandima.
Furthermore, Stephen Williams, past president of the BIE from 1986-1988 told the engineers that the BIE provides a fertile environment where they can meet, share ideas and grow professionally.
“The BIE is also a nesting place for graduate engineers to learn from their peers and seniors, it also cater for engineering technicians and technologists and so nobody in the technology field is left out” he said.
He further indicated that Botswana Government provides a conductive environment for growth of engineering professionals.
“It must be stated that the Botswana Government recognises the existence of BIE and it can further be stated that the government enables ERB to carry out its mandate as a regulator of engineering professionals” said Williams
He plead with engineering companies to recognize and support BIE as it is the only source of engineering personnel’s for various Industries .
Furthermore, when giving his farewell speech, Michael Pinard , a past president of the institution said how they are viewed as engineers by the general public might be due to some lack of appreciation as to exactly what role they play in the development of the country.
“The BIE slogan is aptly coined-Engineers make it happen, in other words, what man dreams engineers create” Said Pinard.