A $16.2 billion deal the luxury goods businesses have been working on has been subject to a number of obstacles this year.
The pair today said that they have concluded an agreement “modifying certain terms of their initial agreement to reflect a purchase price of $131.50 in cash and to reduce closing conditionality”.
LVMH, the owner of fashion brands including Louis Vuitton and Celine, in November 2019 agreed to buy Tiffany, known for its diamond engagement rings, for $135 per share.
That was before the coronavirus outbreak, which has caused major headaches for the luxury goods sector, with sales impacted by travel restrictions and shops having to close during lockdowns, and there were reports earlier in the year that the deal looked less likely.
In addition, last month LVMH, led by Bernard Arnault, said it could no longer complete the purchase by a November 24 deadline. It cited a French political intervention asking it to delay completing the acquisition until next year due to a threat of new US tariffs on French products.
The companies had been locked in legal disputes, but today said they have agreed to settle their pending litigation in the Delaware Chancery Court.
LVMH’s Arnault said: “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."
Arnault added: "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.”
Alessandro Bogliolo, chief executive of Tiffany, said: “We continue to believe in the power and value of the Tiffany brand and the compelling long-term strategic and financial benefits of this combination.”