The highly anticipated merger between luxury group LVMH and Tiffany & Co have fallen through, but the American jeweller has filed a lawsuit to enforce it
French luxury conglomerate LVMH and American jeweller Tiffany & Co’s US$16.2 billion deal was set to be the biggest acquisition in the history of luxury—but it has now been called off.
In a statement released on September 9, LVMH addressed the status of the acquisition, citing “a succession of events which undermine the acquisition of Tiffany & Co”. It allegedly involved a letter from the French European and Foreign Affairs Minister, “which directed the Group to defer the acquisition of Tiffany until after January 6th, 2021” amidst threats of additional U.S. tariffs against French products. The United States had announced 25 per cent tariffs in July on French cosmetics, handbags and other imports, as a response to France’s digital services tax.
LVMH’s statement also noted Tiffany & Co’s request to extend the deadline of the merger agreement from November 24 to December 31, 2020. An earlier deadline was set to expire on August 24.