PARIS – LVMH Moët Hennessy Louis Vuitton said on Thursday its acquisition of Tiffany & Co. is expected to close on Jan. 7, after Tiffany shareholders overwhelmingly approved the updated agreement for the French luxury conglomerate to buy the storied American jeweler for a reduced price.
The new deal replaces the original November 2019 agreement with a $131.50 in cash per share purchase price, compared with the original offer of $135 a share. That equals about $420 million in savings for LVMH. The two parties also agreed to settle pending litigation in the Delaware Chancery Court. The final purchase price is $15.8 billion.
After the deal is complete, Tiffany will no longer be a public company, but an indirect wholly owned subsidiary of parent company LVMH, thus joining a stable of luxury brands that includes Dior, Louis Vuitton, Celine, Fendi, Givenchy and Berluti, not to mention jewelers Bulgari, Chaumet and Fred.
The agreement seals a turbulent engagement that saw LVMH strike an agreement to buy Tiffany for a record $16.2 billion, but appear to get cold feet after the coronavirus crisis hit. In September, the group said it was walking away from the deal, triggering a lawsuit by Tiffany.
By October, both parties had reached a truce in order to avoid legal proceedings that would have been harmful on both sides.
LVMH Seen Driving Tiffany More Upscale
Tiffany Shareholders OK LVMH Offer
LVMH vs. Tiffany — Off Again, On Again Dealmaking
Source: Read Full Article