LVMH has been in the spotlight recently after announcing the submission of its controversial acquisition of Tiffany for approval by the European Union. This move comes amidst a legal battle between the two luxury giants over the proposed $16 billion deal that was initiated last year. The French government’s request to delay the closing and concerns about Tiffany’s business amid the COVID-19 pandemic have caused a roadblock in the acquisition process.
Tiffany responded promptly to LVMH’s announcement by filing a lawsuit in a Delaware court, urging the conglomerate to honor the agreement. The renowned jewelry retailer accuses LVMH of intentionally delaying the antitrust approval process to sabotage the deal, a claim that LVMH vehemently denies. The company states that it always intended to seek regulatory review for the acquisition.
With eight out of ten antitrust clearances already secured, LVMH is now awaiting approval from the EU and Taiwan to finalize the deal before the November 24th deadline. Despite the legal dispute, the company remains confident in meeting the timeframe. Tiffany’s actions underscore the tension between the two firms, with the U.S. jeweler seeking a resolution before the deadline to move forward with the acquisition while LVMH emphasizes the need for thorough preparation for the legal battle ahead.
The upcoming court hearing in Delaware will address Tiffany’s motion to expedite the case, allowing both sides to present their arguments. The outcome of the lawsuit will determine the fate of the much-anticipated merger between LVMH and Tiffany, with the luxury industry closely monitoring the situation as the deal hangs in the balance.
For more information on the ongoing legal battle between LVMH and Tiffany, check out this Reuters article and this CNBC report.
