Louis Vuitton owner LVMH cancels $ 16 billion deal with Tiffany & Co. after extensive back and forth
The French luxury giant has announced that it will not buy the jewelry giant in what was to be one of the biggest business deals ever. Find out more.
The French luxury house LVMH, parent company of brands like Louis Vuitton, Dior, Fenty, etc. was ready to acquire Tiffany and Co., the famous jewelry brand for $ 16 billion. On Wednesday, LVMH announced it was pulling out of the takeover bid after numerous delays that “undermined” the deal.
In return, Tiffany and Co announced that the company will take legal action to force the acquisition while accusing LVMH of simply finding an excuse not to pay the price. Tiffany added that LVMH also threatened to abandon the deal unless the price was reduced.
LVMH revealed that the brand had received a letter from the French government asking it to postpone the deal until January 2021 due to threats of US tariffs on French imports. In addition, Tiffany and Co. had requested that the deadline be extended to December 31. “Because of these elements … LVMH will therefore not be able to finalize the acquisition of Tiffany and Co”, we can read in a press release revealed by the brand.
Tiffany also released a statement and called LVMH baseless and opportunistic to “Use social justice protests in the United States and the COVID-19 pandemic to avoid paying the agreed price.”
The transaction which had been volatile for months ended after the announcement in November 2019 that LVMH would acquire Tiffany and Co, for 16 billion USD which would be finalized by mid-2020. In June, LVMH’s board of directors expressed concerns about whether the New York-based jewelry chain would be able to cover all of its debts.
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