- Huw Hughes
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French luxury giant LVMH and US jewelry brand Tiffany & Co have
reportedly delayed the deadline for their acquisition deal by three
months.
The 16.2 billion dollar deal is now set to close in November after it
failed to close on 24 August, the date set out in the documents of the
deal, Reuters reports, citing sources familiar with the matter.
Under the terms of the deal, 24 August was set as the first deadline to
complete, but either party could push back that deadline as far as 24
November. Tiffany is now exercising that option, according to the
source.
LVMH announced in November it would be acquiring Tiffany in what was its
biggest deal to date.
In June, LVMH confirmed it was not planning to buy shares in US jewelry
brand Tiffany & Co on the open market. “Considering the recent market
rumors, LVMH confirms, on this occasion, that it is not considering buying
Tiffany shares on the market,” the group said in a statement at the
time.
It followed reports that LVMH was rethinking the deal following
industry-wide poor trading caused by the Covid-19 pandemic. However, the
following week, Tiffany announced it received additional regulatory
approval for its acquisition by LVMH.
LVMH reportedly considered negotiating the terms of the deal based on
the impact of Covid-19 but ultimately decided not to, the sources said.
Photo credit: Louis Vuitton, Facebook
