The French luxury giant has announced that it will no longer complete its takeover of Tiffany & Co.
Following a recent announcement that the LVMH and Tiffany deal would be completed in November of this year, it has now been announced that due to a letter the group received from the French government detailing threats from the US to impose tariffs on French goods, that the acquisition will not be going ahead.
The initial deal was struck last November, with a price of $16.2bn agreed upon for the luxury group to acquire the brand to add to its growing portfolio. Tiffany’s requested that the merger agreement be extended from November 24 to December 31, 2020 however the Board of LVMH said it would only follow through on the original agreed upon date and given the request from the French government to delay this due to ongoing conversations with the US, that “the Group LVMH will not be able to complete the acquisition of Tiffany & Co.”
Tiffany & Co. has now filed a lawsuit, ordering LVMH to complete the acquisition.
