The two companies said in a joint statement Thursday that they had changed the terms of their original merger agreement, lowering the price per share that LVMH would pay from $ 135 to $ 131.50. The move now values the company at $ 15.8 billion, or $ 400 million less than the $ 16.2 billion initially agreed. It also ends a legal battle over the deal.LVMH announced in September that it would abandon its proposed acquisition of Tiffany, which was to be the largest luxury goods transaction in history. Tiffany then sued LVMH in a Delaware court, leading to a counter-suit from the French group.
“We are very pleased to have reached an agreement with LVMH at an attractive price and to be able to proceed with the merger now,” Roger Farah, President of Tiffany, said in the statement. “The board concluded that it was in the best interests of all of our stakeholders to obtain certainty of closure. ”
LVMH CEO Bernard Arnault said the new deal was “balanced” and “allows LVMH to work with confidence on the Tiffany acquisition”.
– This is a developing story and will be updated.