The billion dollar deal was announced almost a year ago: luxury brand group LVMH acquires jewelery chain Tiffany & Co. about. But then the corona crisis came and the owner of bag brand Louis Vuitton and champagne maker Moët & Chandon suddenly did not feel like the takeover.
But after legal action and reproaches back and forth, there is now another deal: the purchase continues, but for a slightly lower price. LVMH does not pay 16.2 billion dollars, but 15.8 billion.
At the beginning of September, LVMH announced that it would cancel the deal. Tiffany then filed a lawsuit and demanded that LVMH proceed with the purchase at the original price. “LVMH is opportunistically using the protests in the US and the corona pandemic to get out of the deal.”
A few days later LVMH in turn filed a lawsuit against Tiffany. The company felt that the corona crisis had changed circumstances so much that it did not have to go through with the deal.
After that, the two fighting cocks entered into talks again and this new deal came true. “We are convinced that the Tiffany brand has enormous potential and is well-placed with LVMH,” said LVMH CEO and richest man in Europe Bernard Arnault in a press release.
Tiffany has around 300 jewelry stores and 14,000 employees worldwide, including 5,000 diamond polishers and jewelery makers. In the Netherlands there is a Tiffany in the Amsterdam PC Hooftstraat and a ‘shop-in-shop’ in the Bijenkorf in Amsterdam.
LVMH owns some 75 luxury brands, including Christian Dior, Givenchy, Fendi, Marc Jacobs and Bulgari.