Tiffany & Co sues LVMH after backing out from its $16 billion acquisition deal
On Wednesday, Tiffany & Co (TIF.N) reported that it would sue the world’s largest luxury goods group LVMH Moët Hennessy Louis Vuitton (LVMH.PA) after pulling out from its $16 billion acquisition deal.
According to LVMH’s Chairman and Chief Executive Officer Bernard Arnault, the board of directors received a highly unusual request from the Ministry of Europe and Foreign Affairs to postpone the acquisition deal until January 6, 2021. This is due to the threat of additional U.S. tariffs against French products.
“I am sure that you will understand the need to take part in our country’s efforts to defend its national interests,” France’s Foreign Minister Jean-Yves Le Drian wrote in a letter that was published on Wednesday.
In return, Tiffany stated that it would launch a lawsuit in the United States in an attempt to force LVMH to continue the acquisition deal by the end of November 2020.
“The French government is certainly very active in defending the French national interest. But this has meant in most cases preventing acquisition of French companies,” Bernstein’s Luxury Goods Analyst Luca Solca said.
Tiffany’s shares were down by 6.4% at $113.96 on Wednesday.