After a months-long legal bout, Tiffany & Co. has been acquired by LVMH Moët Hennessy Louis Vuitton SE (LVMH) for far less than the two companies originally agreed upon. 

Tiffany agreed to accept a lower purchase price from the French luxury products group, ending the long legal battle that had threatened to derail the billion-dollar deal.

In a press release Thursday, Tiffany said that it modified the terms of last year's merger agreement, lowering the price per share that LVMH will pay from $135 to $131.50. The move now values Tiffany at $15.8 billion, noticeably less than the $16 billion originally agreed upon, CNBC reported. It also ends the legal battle over the deal.

Tiffany and co. Tiffany and LVMH reach a final agreement to resuscitate their merger. Photo: AFP / STEPHANE DE SAKUTIN

LVMH announced in September that it would abandon its planned acquisition of Tiffany. LVMH said that a trade fight between Brussels and Washington had forced it to scrap the agreement, but some analysts believed that the move was a bid to renegotiate the sale.

Tiffany argued that the decision had no legal grounds. The New York Jeweler sued LVMH in a Delaware court, saying that LVMH breached its deal and should go ahead with the merger. LVMH countersued, arguing that the coronavirus pandemic had seriously damaged the U.S. jeweler's business and carried "devastating and lasting" effects.

The deal is expected to help LVMH better compete with rival Swiss jewelry seller Richemont by cementing its position in watches and jewelry. The deal will also help LVMH boost the company's presence in the U.S.

Bernard Arnault, LVMH's billionaire CEO, characterized the new agreement as "balanced," and said it "allows LVMH to work on the Tiffany acquisition with confidence."

"We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany and its employees...," he added.

The deal, which must be approved by Tiffany shareholders, is expected to close early next year.

"We are very pleased to have reached an agreement with LVMH at an attractive price and to now be able to proceed with the merger," said Roger Farah, the chairman of Tiffany, in a statement Thursday. "The board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing."