After months of protracted negotiations, luxury goods group, LVMH and high-end jeweller, Tiffany & Co, have finally concluded an agreement to modify certain terms of their initial merger agreement to reflect a lower purchase price of $131.50 per share.

 

Other key terms of the agreement remain unchanged, according to LVMH who has agreed to settle its pending litigation with Tiffany in the Delaware Chancery Court. LVMH filed its countersuit against Tiffany with the Delaware Chancery Court on 28 September, after making its intentions clear earlier in the month.

 

The Boards of Directors of LVMH and Tiffany have approved the terms of the transaction and all required regulatory approvals have been obtained. Their modified agreement provides that the regularly scheduled Tiffany quarterly dividend of $0.58 per share due to be declared on 19 November, 2020 will be declared and paid.

 

The merger is expected to close in early 2021, subject to Tiffany shareholder approval and customary closing conditions.

 

LVMH ‘RIGHT HOME FOR TIFFANY’

Roger N. Farah, Chairman of the Board of Directors of Tiffany, commented. “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.”

 

Bernard Arnault, President and CEO of LVMH, commented: “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.

 

“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, Tiffany CEO, added: “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.”