LVMH and Tiffany to finally close the acquisition deal worth $16 billion
On Thursday, France’s LVMH Moet Hennessy Louis Vuitton SE (MC.PA) announced that it would pay slightly less to acquire Tiffany & Co (TIF).
The French multinational corporation said that both companies agreed to end a bitter dispute triggered by the coronavirus pandemic and finally close the luxury sector’s biggest-ever deal.
“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,” LVMH’s Chief Executive Officer Bernard Arnault said in an interview.
The American luxury jewelry and specialty retailer’s new takeover price was set at $131.5 per share, down from the original deal worth $135.
LVMH stated that Tiffany & Co’s total price tag was about $15.8 billion.
Moreover, Tiffany & Co said that the firm would pay its regular quarterly dividend worth $0.58 per share starting on November 19, 2020.
“Tiffany and LVMH have also agreed to settle their pending litigation in the Delaware Chancery Court,” the companies said in a statement.