France’s LVMH, the world’s biggest luxury goods group, will take over Bulgari in a deal which values the Italian jeweller at €3.7 billion.

The offer, which priced Bulgari’s shares at a 60 per cent 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 expected.

Founded by Bernard Arnault, LVMH is built solely on acquisitions. Its brands include Louis Vuitton handbags, Chaumet and Fred jewellery, Kenzo fashion, Hennessy cognac and Moët Chandon champagne.