Sunday, May 26

Louis Vuitton Still Buys Jewellery Chain Tiffany

Jewellers chain Tiffany is nevertheless taken over by the French luxury group Louis Vuitton Moët Hennessy (LVMH).

 

The company behind brands such as Dior, Louis Vuitton, and Sephora previously pulled the plug from the deal, which resulted in a real takeover soap. After much haggling, a slightly lower acquisition price was ultimately agreed.

Altogether, the deal is still worth nearly $ 16 billion, about $ 425 million less than initially agreed. The compromise ends a period of much mutual blame. Even the French government was forced to intervene at one point. There have also been lawsuits in the United States.

LVMH was angry, among other things, that despite the corona crisis, Tiffany still paid dividends and distributed bonuses to its own management.

At the beginning of September, the French company announced its withdrawal. In doing so, LVMH also pointed out impending import tariffs in the United States on French goods, which would make it challenging to meet the deadline.

Tiffany immediately suspected LVMH of deliberately delaying the acquisition process in order to enforce a lower price.

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