LVMH disagrees: Tiffany’s acquisition may be cancelled and turn into one of the largest legal battles of the last decades. Rumors over the request to renegotiate the deal have been circulating in the last few months due to Covid-19 related issues, and were all quashed by the French group.
Now LVMH goes back and allegedly no longer intends on closing the agreement. Apparently, in response, Tiffany has already asked its lawyers to cite the French group and bring it to court.
The largest deal in the luxury segment, 16.2 billion USD, is one step from being cancelled. Uncertainties caused by the Covid-19 pandemic was joined by two other reasons. According to what reported by Business of Fashion, LVMH confirms it has received a request from France’s Foreign Ministry to delay the acquisition to after January 6th, 2021.
Why? Because the United States are threatening to impose duties on goods coming from Europe. The conglomerate itself has pointed out that Tiffany requested the closing to be pushed to December 31st, more than a month after the agreed upon date on the contract. In light of the situation, LVMH states it finds itself in a position that make it unable to complete the acquisition.
Tiffany’s request to prolong the due date for the closing isn’t confirmed by the US-based business. According to what reported by the Financial Times, the brand has taken legal actions against LVMH, accusing it of blocking the approvals of various commissions to force a renegotiation of the terms of the acquisition.
Also the French group has yet to deposit documents for approval in three areas, including the EU.
And, according to Tiffany, they threaten to abandon the deal if the purchasing price wasn’t reduced. The same group, write the US newspaper citing anonymous sources, will file a lawsuit against the French with the Delaware Court, in hopes of forcing LVMH to close the deal before the November 24th due date.