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The figure is gigantic: the luxury company LVMH, which owns brands like Louis Vuitton, is taking over American jeweler Tiffany for just under $ 16 billion. The acquisition has been a controversial issue for a long time.
The world’s largest acquisition in the luxury goods sector appears to have been bailed out. After a bitter dispute, French group LVMH and US jeweler Tiffany agreed on a slightly lower price, the two companies announced Thursday. LVMH is now putting about $ 15.8 billion on the table, 425 million less than initially agreed. The owner of brands such as Louis Vuitton, Moet & Chandon champagne and Bulgari perfume pays $ 131.50 per share for Tiffany instead of $ 135.
In the crown pandemic, the entire luxury industry is losing its revenues after a decade of unimaginable growth. Furthermore, the acquisition, which had already been agreed in 2019, was faltering due to the threat of US tariffs.
Luxury companies have long argued about acquisitions
LVMH threatened to cancel the merger, but Tiffany refused to accept it. Founded in New York in 1837, the company sued to enforce the merger plans. LVMH also went to court. Now Tiffany and LVMH want to drop the pending lawsuits.
Antitrust authorities have already approved the merger. Now the shareholders of Tiffany must give the green light. The new offering is slightly above Tiffany’s closing price on Wednesday, when the stock traded at just under $ 130.
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