10-9-2020
LVMH calls off its acquisition of Tiffany, prompted Tiffany filing a lawsuit against the French luxury conglomerate for avoiding the completion of the US$16 billion takeover deal and in attempt to force the completion.
The French foreign ministry wrote to LVMH’s board asking delay the deal until 6 January 2021 after the United States threatened to implement an additional customs duty on the import of certain French goods. LVMH said Tiffany had also asked that the deal be completed by 31 December instead of 24 November as agreed. LVMH board has decided to finish the deal before the original 24 November as stated in the agreement and “will therefore not be able to complete the acquisition of Tiffany”.
In response to LVMH, Tiffany stated on a press release: "This latest development represents nothing more than LVMH's most recent effort to avoid its obligation to complete the transaction on the agreed terms, not dissimilar from LVMH's baseless, opportunistic attempts to use the US social justice protests and the Covid-19 pandemic to avoid paying the agreed price for Tiffany shares”.
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