Paris-based fashion giant LVMH announced the largest deal in luxury. Finally, New York jeweller Tiffany agreed to a slightly reduced offer from LVMH, The Irish Examiner has learned.
The deal means that LVMH, the owner of Christian Dior, Louis Vuitton and Fendi, will now pay $131.50 for each Tiffany share. That puts the total price tag at $15.8 bn, down from the $ 16.2 bn that was first offered earlier this year.
Thus, LVMH appeared to walk away from the acquisition last month after it said the French government had pushed for a delay because of the threat of proposed US tariffs.
Taking into account the current situation, both sides believe that LVMH is the optimal home for Tiffany. “We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany,” LVMH CEO Bernard Arnault said in a statement on Thursday.
Over the years, Tiffany has shifted its focus to younger shoppers and made a significant push online. The deep pockets of LVMH could go a long way in helping that transformation along. Under LVMH’s umbrella, the American brand will significantly strengthen its position in high-end jewellery and in the US market. LVMH is also targeting China’s economy, where Tiffany has been expanding.
The buyout has been approved by the boards of both companies and is expected to be completed early next year.
The confirmation confirms a report in Thursday’s WWD that the two parties had reached a truce to avoid legal proceedings deemed harmful to both parties.
It’s been a messy fight since Paris giant said it was walking away from the deal in September, pointing at first to an unusual request from the French government (which is in the midst of a trade spat with Washington) and then mismanagement, poor performance and clauses in the contract.
