Tiffany And LVMH Modify Merger Price, Shaves $400M Off Asking Price

Words by Retail Bum

Tiffany And LVMH Modify Merger Price, Shaves $400M Off Asking Price
Tiffany And LVMH Modify Merger Price, Shaves $400M Off Asking Price

After months of dillydallying and legal drama, LVMH and Tiffany & Co. are finally set to tie the knot. LVMH has agreed to acquire the American jeweler for $131.5 per share in cash, bringing the final price tag to $15.8 billion. The new deal officially shaves off $400 million from the original asking price of $16.2 billion.

“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. The Board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing,” said Roger N. Farah, Chairman of the Board of Directors of Tiffany.

In September, Retail Bum reported that LVMH pulled out of the deal after Tiffany saw its same-store sales drop by 44 percent. Subsequently, LVMH decided it needed to reassess the deal after it received a directive from France’s minister of foreign affairs to defer the deal until after January 6 to assess the impact of the U.S. tariffs on French goods. 

But now with an agreement in place, the companies have gone ahead and settled their dueling lawsuits. The legal battle was first initiated by Tiffany in September as the jewelry company believed LVMH deliberately stalled the deal.

“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. 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,” said Bernard Arnault, President and CEO of LVMH.

The two companies now also have all required regulatory approvals to move forward with the deal. Aside from the new purchasing price, all other aspects of the deal remain unchanged. The deal is expected to close early next year.

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