LVMH takeover of Tiffany is back on – for a reduced price

LVMH and Tiffany & Co. have ended their bitter legal dispute by agreeing on a slightly lower takeover price.

The Paris-based luxury retail conglomerate, whose portfolio includes Louis Vuitton, Christian Dior and Bulgari, will acquire the famed U.S. jeweler for $131.5 a share, which is down from the original deal’s price of $135 a share. The reduced price brings the total price to about $15.8 billion — and saves LVMH about $425 million off the original price.

The deal is expected to close in early 2021, subject to Tiffany shareholder approval and customary closing conditions.

“This balanced agreement with Tiffany’s Board allows LVMH to work on the Tiffany acquisition with confidence and resume discussions with Tiffany’s management on the integration details,” said Bernard Arnault, president and CEO of LVMH. “We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany and its employees during this exciting next chapter.”

The new deal concludes a bitter battle — and allows both companies to save on what could have been costly legal fees — that began with LVMH saying it could no longer complete the transaction by a Nov. 24 deadline, citing French government intervention due to tension over U.S. tariffs on French products.

Tiffany in return sued LVMH to force it to close the deal at the original price. LVMH counter-sued Tiffany over alleged mismanagement during the pandemic in an apparent bid to get out of the deal. The two companies’ were slated to go to trial in January.

“We are very pleased to have reached an agreement with LVMH at an attractive price and to now be able to proceed with the merger,” stated Tiffany chairman Roger Farah. “The board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing.”