Why LVMH Scrapped Deal With Tiffany

SourceForbes
SectorRetail
CountryGCC

Zz/STRF/STAR MAX/IPx The deal of LVMH acquiring Tiffany was made in heaven. The luxury jeweler fit into the LVMH luxury firmament and would have contributed mightily to the earnings. But Bernard Arnault felt that the $16.2 Billion deal was too rich in these stressful times.                                                                                                                                                  Several factors complicated the deal and contributed to the decision: 1.   LVMH indicated that the deal could not close “as it stands”. 2.   The U.S. Government is threatening to impose tariffs on French goods by the end of the year. 3.   Despite the initial agreed upon closing date of November 24, 2020, Tiffany had requested postponement of the closing until the end of the year. 4.   The French minister of foreign affairs directed the deal should be closed after January 6, 2021. The company, at a press conference, stated ...read more...