LVMH, Tiffany patch up differences, agree deal

A bitter legal battle between two of the world's top luxury goods maker came to an end Thursday (October 29), when U.S. jeweler Tiffany agreed with LVMH to lower its buyout price.

It means the French luxury group can move ahead with its takeover for a total of $15.8 billion.

The two fell out after LVMH said in September it could no longer complete a deal agreed last year.

It blamed what it called Tiffany’s "dismal" performance during the health crisis, and a French government letter asking it to delay the buyout.

Those issues now look to be solved, and LVMH has achieved its goal of lowering the cost of the takeover.

A new price has been set at $131.5 a share - down from $135 in the original deal.

That means a total discount of $425 million for LVMH.

In a statement, the two companies confirmed they had agreed to settle their pending litigation.

The takeover had already been cleared by antitrust regulators and is expected to close in early 2021, subject to Tiffany shareholder approval.

LVMH shares rose around one percent in early trade Thursday.