France's LVMH will take over Italy's Bulgari in a 3.7 billion euros ($5.19 billion) deal to add lustre to the No.1 luxury group's jewellery business and bring it more exposure to emerging markets. The offer, which priced Bulgari's shares at a 60 percent premium to its average level over the last month, could herald the return of consolidation in the luxury market, which bounced back from the 2009 slump much faster than analysts expected. Bulgari will benefit from LVMH's global retail network, improve margins through cost-sharing and help the luxury group close the gap with bigger watch and jewellery companies Richemont (CFR.VX), whose shares rose 2.9 percent, and Swatch (UHR.VX).
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