French luxury group LVMH has offered to buy Tiffany & Co. for $14.5 billion in cash, sending shares in the New York jewelers soaring.

The purchase would add another household name to LVMH’s plethora of upscale brands. It owns fashion names such as Christian Dior, Fendi, and Givenchy as well as watchmaker Tag Heuer.

It would also give LVMH a much broader foothold in the United States and broaden its offerings in jewelry.

LVMH cautioned in a brief statement that “there can be no assurance that these discussions will result in any agreement.”

Tiffany said the offer was for $120 a share, which is about $14.5 billion. The Wall Street Journal first reported on the offer over the weekend.

The New York-based company said Monday that it was considering the offer. Its shares jumped 31% to $128.81 in premarket trading in New York.

The offer comes as Tiffany has struggled with stagnating sales as China’s slowing economy has weighed on spending by Chinese tourists, who make up a substantial portion of luxury spending. The strong dollar has also made Tiffany products more expensive for consumers outside the U.S.

LVMH competes with the Kering Group, which owns Gucci and Saint Laurent, and Richemont SA, which owns Cartier.

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