Connect with us

Headlines

LVMH Cancels $16.2B Acquisition of Tiffany

Tiffany has in turn filed a lawsuit.

mm

Published

on

LVMH has called off its planned $16.2 billion acquisition of Tiffany & Co.

Tiffany (NYSE: TIF) has, in turn, filed a lawsuit to compel the luxury conglomerate to follow through with the deal.

LVMH said it received a letter from France’s foreign affairs minister asking that the transaction closing be delayed until after Jan. 6. The company said the request came “in reaction to the threat of taxes on French products by the US.”

“Furthermore, the Board noted Tiffany & Co.’s requested to extend the ‘Outside Date’ in the Merger Agreement from November 24th to December 31st, 2020,” the company stated.

Because the closing deadline won’t be met, “The deal cannot happen,” Reuters quoted LVMH finance chief Jean Jacques GuionyGuiony saying.

“We are prohibited from closing the deal.”

Advertisement

But Reuters noted that the deal has become less attractive for LVMH in light of decreased luxury sales amid the COVID-19 pandemic.

Tiffany said in its lawsuit, filed in the Court of Chancery of Delaware, that LVMH’s real objective is “to attempt to renegotiate the merger price to which the parties agreed last November and, barring renegotiation, run out the clock.”

The merger remains subject to regulatory clearance by the European Commission, the Japan Fair Trade Commission, the Mexican competition authority and the Taiwan Fair Trade Commission.

Over the years, INSTORE has won 80 international journalism awards for its publication and website. Contact INSTORE's editors at [email protected].

Continue Reading
Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

Downsizing? Wilkerson Is Here to Help

Orin Mazzoni, Jr., the owner of Orin Jewelers in Garden City and Northville, Michigan, decided it was time to downsize. With two locations and an eye on the future, Mazzoni asked Wilkerson to take the lead on closing the Garden City store. Mazzoni met Wilkerson’s Rick Hayes some years back, he says, and once he made up his mind to consolidate, he and Hayes “set up a timeline” for the sale. Despite the pandemic, Mazzoni says the everything went smoothly. “Many days, we had lines of people waiting to get in,” he says, adding that Wilkerson’s professionalism made it all worthwhile. “Whenever you do an event like this, you think, ‘I’ve been doing this my whole life. Do I really need to pay someone to do it for me?’ But then I realized, these guys are the pros and we need to move forward with them.”

Promoted Headlines

Most Popular