Renewed agreement to acquire Louis Vuitton under French LVMH Tiffany October 30, 5:59
France's LVMH Group, which owns luxury brands such as Louis Vuitton, has announced that it has renewed its agreement to reduce prices for the acquisition of American jewelery brand Tiffany, which had announced withdrawal of the plan.
LVMH agreed last November to buy Tiffany for a total of $ 16.2 billion, or about JPY 1.69 trillion, but plans were made last month as the new coronavirus hit the business hard. It had announced a policy of withdrawal.
On the 29th, LVMH announced that it had renewed its agreement with Tiffany to reduce the purchase price.
Local media reports that the total acquisition price will be reduced by $ 425 million, or around ¥ 44 billion.
Following the announcement of the withdrawal of the LVMH acquisition last month, the two sides have filed suit against each other, but they have also settled.
LVMH commented, "We have a well-balanced agreement and we can proceed with our plans with confidence."
"It is in the best interests of all parties to ensure a merger," Tiffany said.
Both companies aim to complete the procedure early next year.