An article in The Wall Street Journal has reported French luxury goods conglomerate LVMH is interested in purchasing Tiffany & Co., confirmed by a letter sent to the jewelry retailer outlining a deal worth approximately $14.5 billion.

Although both companies announced the offer today, Tiffany has revealed that there are currently no on-going discussions regarding the deal. LVMH had confirmed that preliminary discussions have been held following the luxury group's initial proposal earlier this month as reported by Bloomberg News. If the deal is sealed, LVMH's $214 billion market value would only increase with the conglomerate's greater involvement in the jewelry sector, which is one of the fastest growing luxury businesses. Currently, LVMH owns luxury watchmakers Hublot and TAG Heuer.

Tiffany's recent slip in both domestic and overseas quarters sales as well as competition with the European jewelry market is pressuring the company to act. Prior to their 2011 takeover of Bulgari, LVMH had expressed interest in Tiffany. LVMH's presence in the US would expand with their hopeful acquisition of the American jewelry retailer, making the transaction one of the biggest acquisitions yet by LVMH's chief executive Bernard Arnault, who is also Europe's richest man.

Earlier this month, the LVMH-owned fashion house Louis Vuitton opened a factory in Texas. Tiffany would be the next step for the luxury conglomerate's focus on expansion in the US, which is the company's second-largest region in terms of revenue.