LVMH Moët Hennessy Louis Vuitton SE has reached a deal to buy storied U.S. jewelry chain Tiffany & Co. (TIF) after improving its offer to $16.2 billion.

The agreement, announced Monday, Nov. 25, values the target at $135 per share, up 12.5% from an initial bid of $120 per share that was rejected but proved sufficient to form the basis for talks.

The new offer equates to a 7.5% premium to Tiffany’s closing price of $125.51 on Friday and is more than 50% higher than its share price of $98.55 on Oct. 25, the day before reports of LVMH’s interest first emerged.

“Following a strategic review that included a thoughtful internal process and expert external advice, the board has concluded that this transaction with LVMH provides an exciting path forward with a group that appreciates and will invest in Tiffany’s unique assets and strong human capital, while delivering a compelling price with value certainty to our shareholders,” said Tiffany Chairman Roger N. Farah in a statement.

LVMH, the world’s biggest seller of luxury goods, will add New York-based Tiffany to its Watches & Jewelry division, where it will sit alongside brands including Bulgari, TAG Heuer and Chaumet. The purchase is the biggest ever by LVMH, which has been a regular buyer of luxury brands and more recently luxury experiences, with this year’s $2.6 billion acquisition of hotelier and travel group Belmond Ltd.

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