Tiffany & Co. (NYSE:TIF) rose at the opening bell on Monday after it announced an agreement with French luxury group LVMH for a US$16.2bn takeover.

The French company, which owns upscale brands such as Louis Vuitton, Fendi and Givenchy, will acquire the US-based jeweller for US$135 per share in cash after Tiffany asked for the initial US$120per share/US$14.5bn offer to be bumped up.

READ: Tiffany asks LMVH to up US$14.5bn offer: media reports

Tiffany has been hit by the US-China trade war that has seen sales to Chinese tourists slide.

LVMH  has been looking to expand to the US for years and is one of the top performers in its sector with a market capitalisation of €194bn and a portfolio of luxury brands in high demand among Asian customers.

“Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth,” said the jeweller’s chief executive, Alessandro Bogliolo, in a release.

“This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities.”

Shares in Tiffany were trading 6% higher on Monday morning, at US$133.25.