Content |
Performance Indicators
Tiffany revenue in 2018 made $4.44 billion.
History
2020: The owner of Louis Vuitton refused purchase of Tiffany for $16.2 billion because of tightening of the transaction
On September 9, 2020 the French producer of luxury goods LVMH Moet Hennessy Louis Vuitton SE announced the refusal from purchase of Tiffany & Co., having explained the solution with tightening of terms of the transaction.
As it appears from the message of LVMH, the Board of Directors of the company studied a request of the French foreign minister to postpone closing of the transaction until January 6, 2021 because of threat of introduction of taxes on the French products from the USA and also Tiffany request for postponement of final date till December 31.
It goes to a section with conditions of the initial agreement according to which the transaction should be closed till November 25, 2020. Therefore LVMH will not be able to close the transaction "as it stands", explained in the LVMH holding which is releasing luxury goods under trademarks of Louis Vuitton, Givenchy, Guerlain, Kenzo, Moet & Chandon and Hennessy.
Tiffany, in turn, reported on September 9, 2020 that it submitted a claim against LVMH in the State of Delaware. The American company considers that LVMH cannot refuse the transaction, reporting violation of its conditions from Tiffany or referring to "patriotic obligations"
 | We regret that we had to resort to such actions, but LVMH did not leave us other choice, except the beginning of legal procedure to protect our company and shareholders. Tiffany is sure that fulfilled all obligations of the merger agreement and are committed to completion of the transaction in the terms coordinated last year. Tiffany expects the same from LVMH — words of the chairman of the board of directors Roger Farakh are cited in the press release. |  |
Against the background of news about failure of the transaction for $16.2 billion the stock Tiffany failed more than for 10% at the beginning of biddings at the Nasdaq exchange on September 9, 2020. The quotation rate of LVMH on the Euronext Paris stock exchange also sank on the same day, but is not so strong — for 0.3% as of 4:34 p.m. Moscow time.[1]
2019: LVMH buys Tiffany for $16.2 billion
Moët Hennessy Louis Vuitton (LVMH), the world's largest company on production of luxury goods, announced on Monday that it will purchase Tiffany & Co. for $16.2 billion. Two companies conducted negotiations on possible acquisition within several weeks before they finally decided on the price in $135 for an action.
Acquisition worth $16.2 billion will become the largest transaction M&A in the market of luxury by this time.
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |