Tiffany & Co has agreed to a slightly reduced offer that clears the path to complete its acquisition by French luxury goods giant LVMH.
A price of $16 billion, based on $135 per Tiffany share and agreed before the global pandemic, was revised to $131.5 per share, meaning LVMH will now pay around $15.8 billion for the jeweler.
Other key terms of the merger agreement, agreed last November, remain unchanged and the two companies have agreed to settle pending litigation in the Delaware Chancery Court that was scheduled to begin in January.
The acquisition has already been cleared by antitrust regulators and is expected to be approved by Tiffany shareholders early next year.
“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. The Board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing,” says Roger N. Farah, chairman of the board of directors of Tiffany.
Bernard Arnault, president and CEO of LVMH, adds: “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.”
LVMH shares were virtually unchanged in this morning’s trading at €400. Tiffany shares rose by just under 1% as the news broke.