After a prolonged procedure, investors in Tiffany shares approved the acquisition of European jewelry company LVMH, with 99% of the voting shareholders approving the deal, which was valued at $15.8 billion, bringing the adjusted value per share to $1131.5, while the original deal value was $16.2 billion and $135 per share.
The original deal was floated in the fall of 2019, but the pandemic crisis posed significant obstacles to the acquisition, and Tiffany reported a 45% drop in its global net sales in the first quarter of its fiscal year that ended April 30, 2020.
According to the merger of the two companies, it was allowed to extend the closing date of the deal to November 24, 2020, provided that the only remaining obstacle by August is the granting of a license from the antitrust authorities.
Tiffany voted to extend the date when LVMH failed to file a request for antitrust approval from three jurisdictions in August, accusing it of stalling beyond the time allowed for the deal, and the dispute ended in court with a lawsuit and counterclaim.
By the end of October, the two parties agreed to adjust the transaction price to $131.50 per share and settled the pending lawsuit, and the company’s equity holders formally approved the revised transaction, bringing the Tiffany brand into the LVMH group.