Clockwise from Top. LVMH & Tiffany Update. After a lot of back and forth, including some court appearances in the Delaware Court of Chancery (always fun to write that one), LVMH and Tiffany have set aside their differences, and it seems the acquisition will close sometime early next year. LVMH is getting a $400M discount off the original purchase price that was negotiated pre-COVID, and as we’ve suspected, all of the contretemps that emerged over the summer were a way to drive down the price and save Bernard Arnault some cash at the expense of Tiffany’s shareholders (like he needs it!). Barring any additional negotiation, it seems that $131.50/share is the final price (down from $135/share). Tiffany was not in a great bargaining position, with its business hurting and in need of cash during the pandemic. As LVMH pointed out earlier this year, its business was down more so than the hard luxury competitors in Europe. Once the acquisition closes, it should help solidify LVMH’s position in the luxury jewelry market, one in which it trails its rival Richemont (owner of Cartier). Arnault’s rise in the luxury industry is detailed
TT Vol. 26
TT Vol. 26
TT Vol. 26
Clockwise from Top. LVMH & Tiffany Update. After a lot of back and forth, including some court appearances in the Delaware Court of Chancery (always fun to write that one), LVMH and Tiffany have set aside their differences, and it seems the acquisition will close sometime early next year. LVMH is getting a $400M discount off the original purchase price that was negotiated pre-COVID, and as we’ve suspected, all of the contretemps that emerged over the summer were a way to drive down the price and save Bernard Arnault some cash at the expense of Tiffany’s shareholders (like he needs it!). Barring any additional negotiation, it seems that $131.50/share is the final price (down from $135/share). Tiffany was not in a great bargaining position, with its business hurting and in need of cash during the pandemic. As LVMH pointed out earlier this year, its business was down more so than the hard luxury competitors in Europe. Once the acquisition closes, it should help solidify LVMH’s position in the luxury jewelry market, one in which it trails its rival Richemont (owner of Cartier). Arnault’s rise in the luxury industry is detailed