Diamonds and Dogs
Largest luxury deal ever. Tiffany's (TIF) is up 6% after agreeing to be acquired by France's richest man and his firm, LVMH for $16.2 billion. The 182-year-old U.S. jeweler, known for its robin's egg blue boxes gets 41% of their sales in the U.S. but has growth potential in China and Hong Kong.
Another deal going the opposite direction. Canadian miner Kirkland Lake Gold (KL) is down 15% after the company agreed to buy the smaller rival Detour Gold Corp for about C$4.89 billion ($3.68 billion) in an all-stock deal, as it looks to scale up its mining operations and boost reserves. Acquisitions in the sector have been scarce in recent years as miners focused on cost-cutting, but the need to bolster shrinking reserves to boost growth and take advantage of rising gold prices are providing the impetus for consolidation.
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