Europe’s richest man shaves $425m off Tiffany price tag
LVMH has agreed to buy US jeweller Tiffany at a slightly reduced price of almost $16bn (£12.3bn), ending a bitter legal dispute over the purchase.
The owner of brands including Louis Vuitton handbags and Hennessy whiskey will pay $131.50 a share, down from the original price of $135, the companies said.
The new price means a discount of $425m for LVMH, but other key terms of the deal agreed last November remain unchanged.
LVMH, which is run by Europe’s richest man Bernard Arnault, previously said it would abandon the purchase, blaming French political intervention and Tiffany’s “dismal” performance during the pandemic for its withdrawal.
The two companies were set to face off in a Delaware court, with Tiffany seeking to force LVMH to honour the deal. The case was due to be heard in early January.
However, on Thursday they said: “Tiffany and LVMH have also agreed to settle their pending litigation in the Delaware Chancery Court.”
Mr Arnault said: “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 takeover marks the biggest deal in LVMH’s history and will give the company a larger presence in the US market and jewellery and watch division.
Famed for its diamond engagement rings and distinctive blue gift boxes, Tiffany was founded in 1837 and featured in the 1961 movie Breakfast at Tiffany’s starring Audrey Hepburn
It is one of the world’s largest jewellers but has struggled with lacklustre annual sales and profit for years.
The new agreement is expected to close in early 2021, according to the statement. The original closing date was Nov. 24.
