// LVMH has agreed to buy Tiffany & Co at a slightly reduced price
// LVMH had previously said it would exit the deal, Tiffany & Co’s “dismal” performance during the pandemic
// Judge Joseph Slights, who is presiding over the case in Delaware, rejected LVMH’s arguments
LVMH has agreed to acquire Tiffany & Co at a slightly reduced price of almost $16 billion (£12.3 billion), ending a legal dispute.
The Louis Vuitton owner will pay $131.50 a share, down from the original price of $135, which equates to a discount of $425 million for LVMH.
LVMH had previously said it would exit the deal, blaming French political intervention and Tiffany & Co’s “dismal” performance during the Covid-19 pandemic.
The businesses are battling it out in a Delaware court, with Tiffany & Co seeking to force LVMH to renegotiate the deal.
Judge Joseph Slights, who is presiding over the case in Delaware, rejected LVMH’s arguments that the case was too complex to expedite, particularly during the Covid-19 pandemic.
Setting a four-day trial at the start of January, the judge said he was “not persuaded” by LVMH’s argument to “slow track” the legal fight.
However, on Thursday they said: “Tiffany and LVMH have also agreed to settle their pending litigation in the Delaware Chancery Court.”
LVMH chairman and chief executive Bernard Arnault said: “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.”
The takeover marks the biggest deal in LVMH’s history and will give the company a larger presence in the US market and jewellery and watch division.
The new agreement is expected to close in early 2021. The original closing date was November 24.