Between 'dimes and diretes', Tiffany accepts new purchase offer from Louis Vuitton
The biggest deal between two luxury goods firms is back, after New York's famed jeweler Tiffany accepted a slightly reduced offer price from France's Louis Vuitton (LVMH).
LVMH will now pay $131.50 for each Tiffany share, putting the total price at $15.8bn instead of the $16.2bn that was offered earlier this year.
The owner of the Louis Vuitton, Christian Dior and Fendi brands, as well as a basket of wines and champagnes, appeared to walk away from the acquisition last month after announcing that the French government was seeking to delay the deal due to the threat of US tariffs. but he changed his stance and there was pressure from investors on both sides to get a deal done.
Rumors that the two luxury companies had revived negotiations began to surface in recent days.
"We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany," LVMH CEO Bernard Arnault said in a prepared statement on Thursday.
In recent years, Tiffany — and its famous blue boxes — have attempted to recapture the brilliance of the Breakfast at Tiffany's era as its customer base has aged. Now it focuses on younger buyers and is betting on internet sales. LVMH's deep pockets could be of great help in achieving that transformation.
Louis Vuitton believes that Tiffany will strengthen its position in the high-end jewelry and US market. LVMH is also betting on the market in China, where Tiffany has expanded.
The purchase has already been approved by the boards of both companies and is expected to close early next year.
