After a long and contentious process, the proposed acquisition of Tiffany (NYSE: TIF) by European luxury retailer LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY) was approved by Tiffany shareholders, reports Reuters.
More than 99% of voting shareholders approved the $ 15.8 billion deal that will bring a modified price of $ 131.50 per share to Tiffany’s stockholders.
Image source: Getty Images.
The original deal was for a $ 16.2 billion to $ 135 per share deal. That was in the fall of 2019, and the pandemic was a major blow to the process. Tiffany reported a 45% decline in global net sales in its first fiscal quarter, which ended April 30, 2020.
The merger agreement allowed the closing date to be extended to November 24, 2020 if the antitrust authorization was the only remaining barrier on the August date. Tiffany decided to extend the date, as LVMH had not even filed for antitrust approval in three required jurisdictions until August 24.
Tiffany accused LVMH of dragging their feet to allow deadlines to pass. The dispute ended in court with legal action and counter-action. In late October, the sides agreed to change the sale price to $ 131.50 per share and to resolve the pending dispute.
Tiffany’s president, Roger Farah, said at the time: “We are delighted to have reached an agreement with LVMH at an attractive price and now we can proceed with the merger.” The shareholders have now officially agreed, bringing the Tiffany brand under the luxury umbrella LVMH.