The European Commission gave the now-disputed deal the thumbs-up on Monday, according to a filing with the Securities and Exchange Commission by Tiffany.
“All regulatory approvals required for the completion of the merger have now been obtained,” Tiffany said.
But the most important approval of all the go-ahead from LVMH chief Bernard Arnault has been withdrawn and the two sides are embroiled in a nasty court fight that’s set to go to trial in Delaware on Jan. 5.
LVMH started to back away from the deal over the summer and in September publicly said it was walking away, citing a letter from the French government.
Immediately, the case went to the courts with Tiffany accusing, among other things, that LVMH was dragging its feet over approvals. Continue reading
It is understood board members of the luxury giant are concerned about the impact of not only the coronavirus pandemic, which has claimed more than 100,000 lives in America and wreaked widespread economic damage, but also the growing social unrest over the death of George Floyd at the hands of Minneapolis police.
In addition, these sources said, LVMH board members voiced concerns about Tiffany’s ability to cover all its debt covenants at the end of the transaction, which was expected to be concluded mid-year.
A woman walks at Tiffany & Co. and designer boutiques of Manhattan and Paris are feeling the chill of a Chinese economic slowdown that has hammered automakers and other industries. That is jolting brands such as Louis Vuitton and Tiffany & Co that increasingly rely on Chinese customers who spend $90 billion a year on jewelry, clothes and other high-end goods. The industry already is facing pressure to keep up as China’s big spenders shift to buying more at the spreading networks of luxury outlets in their own country. Continue reading