LVMH Moët Hennessy Louis Vuitton plans to complete acquisition of Tiffany & Co on January 7 as Tiffany shareholders have approved the updated purchase agreement which reduces Tiffany’s sale price. Louis Vuitton will now purchase Tiffany at $131.50 in cash per share purchase price as against the original offer of $135 a share. That will result in $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 deal completion, 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 enables LVMH to buy Tiffany for a record $16.2 billion. The group had decided to walk away from the deal in September when the coronavirus crisis hit US.
In October, both parties reached a truce in order to avoid legal proceedings that would have been harmful on both sides.
