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In a context of deterioration of the U.S. market linked to the coronavirus pandemic, and while Tiffany’s shares closed down nearly 9% on the New York Stock Exchange, the French luxury giant LVMH could well call into question its plan to buy the jewellery chain. Is the promise of the biggest deal in the history of the luxury industry falling through ?
The acquisition of Tiffany & Co. – leader in luxury in the United States – by LVMH – leader in luxury in France: an exceptional, record-breaking operation, the largest in luxury history, initiated last November and then approved by the shareholders of the famous jeweller last February.
For a total of 14.7 billion euros (16.2 billion dollars), the French group LVMH was about to take over the emblematic American jeweler, further expanding its portfolio of prestigious brands.
But, at a time when the United States seems to be gnawed by all ills, from the health crisis to the recent waves of protests shaking up the whole country, the luxury group could well reconsider this acquisition operation.
With the US market destabilized, Tiffany & Co. is struggling
One of the world’s leading jewellers is now being hit hard by an unprecedented economic and social crisis libido-portugal.com.
The coronavirus pandemic has caused more than 100,000 deaths in the United States and considerable economic damage to the brand, forcing it to close its stores worldwide and curtail production.
More recently, protests after the death of George Floyd at the hands of Minneapolis police have plunged the country into growing social agitation, further challenging the jeweler and ruining his hopes of recovery. The outburst of anger over racial injustice in America has indeed led to looting and destruction of goods in many cities, derailing attempts to revive the American economy.
The verdict was not long in coming: yesterday, Tuesday, June 2nd, Tiffany’s share closed down 8.9% on the New York Stock Exchange, falling to $117.01.
The board of directors of the world’s leading luxury company then called a meeting in Paris on Tuesday evening to “discuss the subject given the deterioration of the American market”, not only in the wake of the pandemic but also in light of the recent political and social unrest.
At this meeting, concerns were at their height. According to the news site Women’s Wear Daily (WWD), the French company’s board of directors expressed concerns about Tiffany’s ability to cover all its debts after the deal, which is expected to close in the next few days.
The agreement to acquire the American jeweller therefore seems “suddenly much less certain“, according to the fashion trade publication WWD.
Although Tiffany and LVMH declined to comment and no firm decision was made after the meeting, board members made it clear that the acquisition should be reviewed: “Although no final decision was made at Tuesday’s meeting, participants sent a clear message that the acquisition should be reconsidered“, says WWD.
Considering the economic situation, the deteriorating outlook, the decline of the luxury market in the United States and the magnitude of all the changes in the world, even the top luxury brand is questioning the wisdom of a takeover and may well … abandon it altogether.
Read also > LVMH denies open-market purchase of Tiffany shares
Featured photo : © LVMH[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
In a context of deterioration of the U.S. market linked to the coronavirus pandemic, and while Tiffany’s shares closed down nearly 9% on the New York Stock Exchange, the French luxury giant LVMH could well call into question its plan to buy the jewellery chain. Is the promise of the biggest deal in the history of the luxury industry falling through ?
The acquisition of Tiffany & Co. – leader in luxury in the United States – by LVMH – leader in luxury in France: an exceptional, record-breaking operation, the largest in luxury history, initiated last November and then approved by the shareholders of the famous jeweller last February viagra générique prix pas cher.
For a total of 14.7 billion euros (16.2 billion dollars), the French group LVMH was about to take over the emblematic American jeweler, further expanding its portfolio of prestigious brands.
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In a context of deterioration of the U.S. market linked to the coronavirus pandemic, and while Tiffany’s shares closed down nearly 9% on the New York Stock Exchange, the French luxury giant LVMH could well call into question its plan to buy the jewellery chain. Is the promise of the biggest deal in the history of the luxury industry falling through ?
The acquisition of Tiffany & Co. – leader in luxury in the United States – by LVMH – leader in luxury in France: an exceptional, record-breaking operation, the largest in luxury history, initiated last November and then approved by the shareholders of the famous jeweller last February.
For a total of 14.7 billion euros (16.2 billion dollars), the French group LVMH was about to take over the emblematic American jeweler, further expanding its portfolio of prestigious brands.
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