Tiffany shareholders approve LVMH takeover deal

The $15.8 billion deal is expected to close in early 2021 and ends an acrimonious dispute between the luxury retailers

Luxury group LVMH pulls out of it's 16 billions deal with Tiffany and Co. and now both compagnies are sued each other in New York, NY on September 12, 2020. US jeweller Tiffany & Co. is suing luxury goods giant LVMH for stalling over a high-profile takeover deal. LVMH said it had been requested by the French government to delay the takeover due to tariff threats from the US. The luxury goods firm already said it was taking another look at the $16.2bn (£12.5bn) deal, which was struck before the coronavirus pandemic hit. Photo by Charles Guerin//ABACAPRESS.COM/Reuters
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US luxury jewellery retailer Tiffany & Co's shareholders on Wednesday approved a $15.8 billion deal with French luxury goods giant LVMH, ending an acrimonious dispute between the two retailers that had stretched for more than a year.

At a virtual special Tiffany stockholder meeting, more than 99 per cent of votes cast were in favour of the deal.

LVMH, headed by Bernard Arnault, the world’s fifth-richest man, made the first offer late last year, but as the luxury industry slipped into a turmoil due to the Covid-19 pandemic the company backed out from its promise to close the deal.

LVMH also cited French political intervention to delay completing the acquisition until January 6, pushing Tiffany into a legal battle in September to force LVMH to honour the deal.

Tiffany had earlier said its sales were improving, citing demand recovery in the United States ahead of the holiday season and China, one of its biggest markets.

LVMH then renegotiated the original deal price of $16bn and lowered it by $425 million. The deal, now cleared by regulators, is expected to close in early 2021.

As agreed in October, LVMH will pay $131.5 per share, down from $135 in the original deal signed late last year.