- LVMH Moët Hennessy Louis Vuitton SE and Tiffany & Co. (NYSE:TIF) recently announced that they have concluded an agreement modifying certain terms of their initial agreement to reflect a purchase price of $131.50 in cash
Leading luxury products company LVMH Moët Hennessy Louis Vuitton SE and global luxury jeweler Tiffany & Co. (NYSE:TIF) recently announced that they have concluded an agreement modifying certain terms of their initial agreement to reflect a purchase price of $131.50 in cash and to reduce closing conditionality.
The sales price is slightly less than the $16.2 billion that the two companies had announced in November 2019. And the other key terms of the merger agreement remain unchanged. Tiffany and LVMH have also agreed to settle their pending litigation in the Delaware Chancery Court.
The Boards of Directors of LVMH and Tiffany have approved the terms of the transaction and all required regulatory approvals were obtained. And the modified merger agreement provides that the regularly scheduled Tiffany quarterly dividend of $0.58 per share due to be declared on November 19, 2020 will be declared and paid.
LVMH seemed like it was going to walk away from the deal last month when the French government started pushing for a delay in order to determine the threat of potential U.S. tariffs.
The merger is expected to close in early 2021, subject to Tiffany shareholder approval and customary closing conditions.
KEY QUOTES:
“We are very pleased to have reached an agreement with LVMH at an attractive price and to now be able to proceed with the merger. The Board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing.”
— Roger N. Farah, Chairman of the Board of Directors of Tiffany
“This balanced agreement with Tiffany’s Board allows LVMH to work on the Tiffany acquisition with confidence and resume discussions with Tiffany’s management on the integration details. 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.”
— Bernard Arnault, President and CEO of LVMH
“We continue to believe in the power and value of the Tiffany brand and the compelling long-term strategic and financial benefits of this combination.”
— Tiffany CEO Alessandro Bogliolo
