Back in November last year, foreign media excited the news that the LVMH conglomerate, which includes brands such as Louis Vuitton, Christian Dior, Givenchy and Guerlain, plans to acquire the famous jewelry brand Tiffany & Co for $ 16.2 billion.
However, as it turned out, the joy was premature: due to the coronavirus epidemic, the company, which belongs to businessman Bernard Arnault, postponed the transaction, and now completely refused to buy the brand. The French conglomerate said it would not be able to complete the planned acquisition of the jewelry house after the French Minister for Europe and Foreign Affairs asked LVMH to postpone the deal until January 6, 2021, due to a US threat to impose tariffs on a number of French goods. The original acquisition agreement stipulated a November 24 deadline for completion.
In response, Tiffany & Co filed a lawsuit against LVMH. According to the press service of the jewelry brand, the reason for such drastic measures was the fact that, according to representatives of Tiffany & Co, LVMH deliberately delayed the deal and then refused its obligations.
«We regret that we had to take these measures, but LVMH left us no choice but to initiate a lawsuit to protect our company and our shareholders. Tiffany is confident that it has met all of its obligations under the merger agreement and intends to complete the transaction on the terms agreed last year. Tiffany expects the same from LVMH“, – quoted the words of Chairman of the Board of Directors Roger Farah to WWD.com.
«Tiffany has agreed to enter into a merger agreement with LVMH based on LVMH’s guarantees. Failure to merge could impact Tiffany’s share price and significantly lower brand value in the future for investments or potential deals with other companies“, – the claim says.
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