Luxury group LVMH and accessories brand Tiffany have ended their dispute. In a statement on October 29, both companies said they have renegotiated a deal they struck last year, but that LVMH will go ahead and complete its proposed acquisition of Tiffany, reports Leatherbiz.
Under the new agreement, LVMH will pay $131.50 for each share in Tiffany. When it first announced the acquisition in November 2019, the price quoted was $135 per share.
In the course of 2020, LVMH began to express concerns about the value of Tiffany and its handling of the covid-19 and in September, following the intervention of a French government minister, it said it was walking away from the deal. Court cases followed.
In the October 29 statement, though, the companies said they had agreed to modify certain terms of their initial agreement to reflect the new purchase price and to reduce “closing conditionality”, but that other key terms of the agreement remained unchanged. They have also agreed to settle their litigation suits.
The merger is now expected to close in early 2021, subject to Tiffany shareholder approval.