Luxury industry: LVMH and Tiffany finally said "yes"

After many twists and turns, the LVMH-Tiffany marriage was concluded, the two parties having reached an agreement on the amount of the buyout of the American jeweler.

REUTERS / Carlo Allegri

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LVMH and Tiffany announce they have reached an agreement to finalize their union.

The amount of the Tiffany buyout has been revised downwards and the transaction could be finalized in January.

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To save their brutally compromised marriage at the end of the summer, the American jeweler Tiffany agrees to lower its purchase price.

For several weeks the two groups had resumed their discussions and they have just reached a financial agreement, which reduces the repurchase price of the Tiffany share to 131 dollars 50 against 135 dollars initially planned.

In total, a discount for LVMH of 400 to 500 million dollars.

The world leader in luxury has been coveting Tiffany since November 2019, when the announcement of their merger concluded for a record amount in luxury of 16 billion 200 million dollars.

But that was before the coronavirus pandemic that swept through the economy and in the process deteriorated Tiffany's results.

At the beginning of September,

that Tiffany's commercial performance was no longer the same.

In reaction, the American jeweler announces that it has taken legal action in Delaware to force LVMH to conclude the initially agreed transaction.

A legal procedure then begins with a trial set for January 5, and the French state steps up to the plate.

►

 the State to the aid of LVMH to postpone the takeover of Tiffany

But the agreement announced this Thursday puts an end to all procedures.

By putting the ring on Tiffany's finger, the luxury giant is doubling the weight of its watchmaking and jewelry division and at the same time spending the largest sum in its history.

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