Tiffany & Co. Sues LVMH

For more than a year now, LVMH and Tiffany have been in talks. LVMH was set to purchase Tiffany & Co. for $16.2 Billion, but now, LVMH is backing out. LVMH insists there is no way to complete the purchase by November 24, 2020, but Tiffany & Co. maintains that the purchase is possible.

Tiffany asserts that LVMH is intentionally dragging things out, not filing the appropriate international permissions, appraisals, permits, etc., in an effort to wiggle their way out of the contract and avoid an upcoming increase in US tarrifs on French luxury goods.

LVMH, who promised to follow through with the acquisition in June 2020, has now stated that the transaction is impossible. Basically telling Tiffany (who saw a drop in stock prices of 10% so far today) the deal is off.

Tres désolé, Tiff.

We’ll see about that, LVMH.

Mark my words, this is going to get ugly.

Tiffany & Co. is fighting back. They filed suit in Maryland, but there is already a potential snag. France has no laws in place that would prevent LVMH from dropping the contract.

To complicate matters further, it was the French government who shared tariff information with LVMH and requested delaying the acquisition.

Who knew jewelry would get so political this year?

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Tiffany & Co. is suing LVMH

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