// LVMH calls off £12.41 billion mega-merger with Tiffany & Co
// Tiffany & Co files lawsuit against LVMH for not closing the transaction
Tiffany & Co is suing Bernard Arnault’s French luxury conglomerate LVMH after it called off its proposed $16.2 billion (£12.41 billion) acquisition of US jeweller Tiffany & Co.
LVMH cited “recent developments” including a request from France’s Foreign Affairs Ministry to delay past the deal’s closing deadline.
This was due to a US plan to impose tariffs on a variety of French and European goods.
- Tiffany & Co sales rise despite Covid-19 affecting luxury sector
- LVMH and Tiffany & Co extend deadline to conclude £12bn deal
Tiffany & Co argued that it was made aware of the latest development on Tuesday and that it is not reason enough to pull out of the deal.
After months of speculation, the Louis Vuitton owner issued statements to diffuse speculation that it planned to buy the jeweller’s shares on the open market.
The lawsuit was filed after LVMH issued a statement saying it would not proceed with the acquisition.
“We believe that LVMH will seek to use any available means in an attempt to avoid closing the transaction on the agreed terms,” Tiffany & Co chairman Roger Farah said.
“We regret having to take this action but LVMH has left us no choice but to commence litigation to protect our company and our shareholders.”
The jeweller is seeking to legally compel the French conglomerate to see the deal through.