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].

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

Is It Your Time to Enjoy Life? Wilkerson Can Get You There.

Mary and Tim Whalen, owners of Crown Jewelers in Pittsfield, Mass., wanted to enjoy life beyond their business. When they decided to retire and close shop, they asked Wilkerson to handle the sale. As long-time Wilkerson customers, Mary says she knew the company could manage all the details of the liquidation. It was also great to have “fresh eyes” on their business, says Mary, which “worked tremendously for us.” Today, the Whalens are beginning a new adventure but are quick to commend Wilkerson for helping them get there. “You have one chance to get it right,” she says about their retirement sale. “Do it right.”

Promoted Headlines

Most Popular