Jimmy Choo PLC

U.K. blue-chip stocks advanced Tuesday, with well-received corporate updates and gains for oil producers helping the market's benchmark chip away at a sharp loss logged in the previous session. The FTSE 100 index UKX, +0.58%  popped up 0.5% to 7,413,89, with only a few components in the red. Among them, shares of Wm. Morrison Supermarkets PLC MRW, -0.53%  fell 0.8% after the company’s market share fell to 10.5% in the 12 weeks to July 16, according to Kantar.

Michael Kors Holdings Ltd. KORS, -0.77% has agreed to acquire luxury shoemaker Jimmy Choo PLC CHOO, +16.67% in a deal valued at 896 million pounds ($1.17 billion), the companies said Tuesday. Jimmy Choo shareholders will receive 230 pence a share in cash, which compares with a price of 195 pence at the close of trade Monday on the London Stock Exchange. The boards of directors of both luxury goods makers have approved the deal, the companies said in separate statements.

Michael Kors on Tuesday said it has agreed to acquire upscale shoemaker Jimmy Choo for £896 million ($1.17 billion), as it looks to offset slower growth in its core handbag business. The luxury-fashion company, like its rivals, has struggled to entice American shoppers to pay full price for its luxury handbags amid fierce price competition and an environment of heavy discounting that has pressured profits. Sales of handbags are lagging as women have traded down to smaller, less-expensive purses.