The Swatch Group – the world's largest manufacturer of timepieces and movements – has signed a strategic alliance to produce watches under the Tiffany label.
Under the terms of a 20 years agreement, Swatch said in a statement the alliance was to "further the development, production and worldwide distribution" of Tiffany & Co. brand watches.
Swatch will incorporate a new watchmaking company in Switzerland, which will be authorised to use Tiffany's trademarks and operate under the name of the United States-based company.
Tiffany will participate in the watch company's pre-tax profits and have a seat on its board of five directors.
The watch company will be wholly owned by Swatch.
The chairman of the Swatch Group, Nicolas G. Hayek, described the agreement as a "pathbreaking strategic move".
"It allows without any financial capital transaction the maximum utilisation of manufacturing and distribution resources of both partners," he said.
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