NEW YORK, Dec 2 (Reuters) - U.S. jeweler Tiffany & Co (TIF.N) said on Sunday it has formed a strategic alliance with the world’s largest watch maker Swatch in a move to further the development and distribution of Tiffany & Co branded watches. Switzerland-based Swatch will incorporate a new watch-making company that will be authorized to use Tiffany’s trademark and operate under the Tiffany name.
The new entity will be wholly owned by the Swatch Group, but Tiffany will share in its profits and have one seat on its five- member board.
The companies in a joint statement said the initial term of the arrangement is for 20 years, with an option to extend the deal for another 10 years, if certain conditions are met.
(Reporting by Euan Rocha; Editing by Jan Paschal)
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