The French-Parisian company, which owns a fleet of companies such as Louis Vuitton, Christian Dior, Bulgari and Hennessy, will take over Tiffany, the shining star of New York in jewelry, for a deal worth 15.8 billion, according to the companies.
The two companies said in November 2019 that the price would be just under $16.2 billion, and LVMH will now pay $131.5 per share of Tiffany stock instead of $135 per share.
LVMH appeared to walk away from the deal last month after the French government had pushed it to delay the deal until the impact of new US tariffs could be assessed. Rumors have started spreading in recent days that both companies are interested in completing this deal. LVMH President and CEO Bernard Arnault said: “We have recognized the tremendous potential of the Tiffany brand and believe that LVMH is the right place for Tiffany and its people of the future.” The deal was approved by the boards of directors of both companies, and is expected to be completed early next year.
The two companies will settle outstanding agreement claims in Delaware Chancery Court. Tiffany sued LVMH and asked the court to make the luxury products company comply with the merger agreement. This transaction will be Tiffany’s step towards globalization.