The world was a very different place when LVMH reached a deal to buy Tiffany & Co. for a record-breaking $16.2 billion back in November 2019. With first coronavirus and now civil unrest following the murder of George Floyd turning American life upside down, reports emerged last week that suggested that the company’s board had raised concerns about the deal, possibly seeking to renegotiate the agreed fee. Reuters, however, reports this isn’t the case.
“LVMH has decided it will not raise the issue of repricing the deal with Tiffany for now, after it considered the legal hurdles involved,” unnamed sources told the news agency. They did, however, go on to state that CEO Bernard Arnault “continues to harbor concerns that the company is overpaying for Tiffany.”
When the acquisition initially took place, LVMH released a statement outlining that the move “will strengthen LVMH’s position in jewelry” in the United States and will “transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Houses.”
Reuters goes on to state that, because the acquisition has yet to sign off on some of the necessary regulatory approvals, LVMH could revisit the issue before the deal closes, especially if Tiffany’s financial condition were to deteriorate.
Stay tuned for further updates.