LVMH Moët Hennessy Louis Vuitton, the Paris-based 33-year-old French multinational conglomerate primarily focused on luxury goods, said in a statement on Wednesday that the French luxury goods megalith was going to terminate its $14.5 billion takeover deal for the US jewellery retailer Tiffany & Co.
citing the French Government’s request to delay the deal in a bid to re-assess the threats of added US tariffs on EU goods in the face of an unfathomable pressure in the industry stemmed of a resurgence of the pandemic outbreak.
Aside from that, in latest vindication of a gloomier outlook over the largest buyout deal in luxury goods industry amid a pandemic outbreak at large, the Paris-based conglomerate had also added at its Wednesday’s statement that both French Government and Tiffany & Co.
had requested a postponement of the deal for a few months, while the French Government would be assessing the impacts of likely US tariffs on French goods. Over the narratives of such chaotic outlook in transatlantic trade relationship, the Louis Vuitton owner LVMH had confirmed earlier on the day it would no longer pursue a $14.5 billion takeover deal for the American luxury jeweller Tiffany & Co.
which was scheduled to be closed by November 24.
Tiffany to sue to enforce the merger accord as LVMH suspends takeover deal
Meanwhile, as an inevitable repercussion of an LVMH move to cancel its acquisition deal for the US jeweller, Tiffany & Co.
was quoted saying in a statement later part of the day that the American luxury jeweller would seek court aids in order to enforce the merger accord that had been signed off back in the November of 2019, while the NY-based American jeweller had also added that the arguments of LVMH, which had yet to seek the required antitrust approvals for the takeover deal, lacked any kind of valid casus belly in accordance with the French laws.
Besides, as the shares’ prices of Tiffany & Co. dipped as much as 6 per cent following the LVMH announcement, Tiffany Chair Roger Farah said in a statement, “We believe that LVMH will seek to use any available means in an attempt to avoid closing the transaction on the agreed terms. ”