French boutique owner Moët Hennessy-Louis Vuitton Group (LVMH) said it would cancel its $14.5 billion acquisition of U.S. boutique jeweler Tiffany. The French government had requested that the acquisition be postponed due to the U.S.’s proposed tariffs on French goods.
LVMH stated that both the French government and Tiffany had requested to delay the completion of the merger. LVMH said the French government wanted to assess the impact of U.S. tariffs on French goods.
LVMH said that as a result, the US$14.5 billion merger originally scheduled to be completed on December 24 will be cancelled.
Tiffasdfssdfsny responded that the company will take legal action to require the execution of the acquisition agreement signed in December 2019. Tiffany said that LVMH’s claims are untenable under French law.
Tiffasdfssdfsny also said that LVMH did not even attempt to pass antitrust audits in three jurisdictions.
LVMH owns 75 boutique brands, including Christian Dior, Fendi, Givenchy, Hublot ), TAG Heuer.
The new crown epidemic has caused a sharp decline in global retail sales, and LVMH’s acquisition proposal for Tiffany is also under pressure.
Tiffany’s stock price has been trading around US$125 per share in recent weeks, far lower than the US$135 per share LVMH agreed to pay before the outbreak last fall. </p
