French luxury group LVMH has agreed to buy iconic New York jeweller Tiffany & Co. for $16.2 billion, adding a famed star to its portfolio that already boasts Louis Vuitton, Christian Dior and Bulgari.

LVMH announced in a statement on Monday that it will purchase the 182-year-old Tiffany and its 300 boutiques worldwide at $135 a share. The agreed deal is higher than the $14.5 billion cash offer LVMH made last month.

Tiffany — known for its delicate jewellery, distinctive blue boxes and an Audrey Hepburn movie — says the deal will ensure its long-term sustainability. Tiffany, which is trying to transform its brand to appeal to younger and more digital shoppers, could use a company with deep pockets to help expand its business.

Paris-based LVMH, led by billionaire Bernard Arnault, says the deal will strengthen its position in high-end jewellery and in the US market. The purchase gives the French conglomerate a new star in its already distinctive portfolio — one that will help it compete with Gucci-owner Kering Group and Cartier-owner Richemont SA.

LVMH already owns 75 brands including Christian Dior, Fendi, and Givenchy as well as watchmaker Tag Heuer. Its flagship brand Louis Vuitton recently opened a handbag workshop in Texas, with President Donald Trump in attendance.

LVMH said both companies' boards approved the deal and hope to finalize the takeover in 2020, subject to the approval of regulators and Tiffany shareholders.