Fashion conglomerate LVMH LVMUY confirmed an agreement to buy Tiffany & Co. TIF in a $16.2 billion bid, the companies said in a joint statement on Monday.
What Happened
European fashion conglomerate LVMH will buy the U.S. jewelry company at $135 per share in cash. The original LVMH offer made in October was $14.5 billion, $120 per share, which Tiffany saw as "undervaluing" of their company.
The owner of 75 fashion brands, including Louis Vuitton and Bulgari, aims to strengthen its position in the U.S. and jewelry business with this deal.
Tiffany's board of directors recommended the shareholders to take the deal, according to the statement.
The deal is expected to be closed in the middle of the next year. It will still have to receive regulatory and Tiffany shareholders approvals.
Price Action
LVMH shares traded at $87.39, 0.18% higher at press time. Tiffany's stock closed at 125.51 Friday.
Benzinga reached out to both companies for further comment.
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