France’s LVMH will pay slightly less to acquire US jeweler Tiffany & Co after the two companies agreed to end a bitter dispute triggered by the coronavirus pandemic and salvage the luxury sector’s biggest-ever deal.
The logo of US jeweller Tiffany & Co. is seen at a store at the Bahnhofstrasse shopping street in Zurich, Switzerland. (File photo: Reuters)
Tiffany in return sued LVMH in a Delaware court, seeking to force it to honor the original deal. The case had been scheduled to be heard in early January.
However, a source close to the matter told Reuters on Wednesday that Tiffany had recently approached LVMH with a more conciliatory tone.
This source said the worsening pandemic in Europe and the United States also played a role in bringing the two sides back to the negotiating table as business conditions deteriorate, and that discussions over Tiffany’s management under LVMH had been left for a later date.
“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, said Tiffany Chairman Roger Farah.
“The board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing.”