The year-long saga of LVMH’s plan to acquire Tiffany & Co. seems to have finally come to an end. After the $16.2 billion deal fell through in September, LVMH and Tiffany have reconciled at a discount, with the luxury goods house agreeing to acquire the jeweler in a revised deal that now values Tiffany at $15.8 billion, CNN reported.
The move also ends a legal battle that erupted between the two parties when LVMH backed out of the initial agreement. Tiffany sued LVMH — the conglomerate that houses Louis Vuitton, Moët Hennessy and other brands — arguing the decision to terminate the deal had no legal grounds and claiming the luxury goods house had breached its obligations. LVMH later countersued, arguing the coronavirus pandemic had caused “devastating and lasting” effects on Tiffany’s business and weakened the brand’s value.
LVMH CEO Bernard Arnault called the revised deal — which marks a $400 million discount for his company — “balanced,” adding that it “allows LVMH to work on the Tiffany acquisition with confidence.”
“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,” said Arnault.
Tiffany, for its part, seems to agree. “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,” said Tiffany chairman Roger Farrah in a statement Thursday. “The board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing.”
The deal, which still has to be approved by Tiffany shareholders, is expected to close early next year.
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