The French LVMH Group, the leader in the global boutique industry, and the American jewelry brand Tiffany have recently reached an agreement on a merger. Tiffany accepted LVMH’s reduction of the merger price by US$430 million. LVMH will buy Tiffany at US$131.5 per share. The trading price per share of the stock is US$3.5 less than the original price. The case is expected to be completed as soon as January 2021.
LVMH previously announced a US$16.2 billion acquisition of Tiffany at the end of 2019, setting a new high in the history of LVMH mergers and acquisitions. Due to the impact of the new crown epidemic on the luxury goods market, LVMH withdrew in September this year In this case, the merger was postponed on the grounds that the United States had imposed retaliatory tariffs on France, but it is generally believed that the main reason was that the merger price was too high. Tiffany subsequently filed a lawsuit against LVMH, and LVMH criticized Tiffany for loose management. However, the two parties will reconcile after the merger and acquisition case is negotiated.
Many recent mergers and acquisitions have changed after the outbreak of the new crown epidemic, including private equity firm SycasdfssdfsmorePasdfssdfsrtners suing LBrasdfssdfsnds, the parent company of the well-known American underwear brand Victoria Secret, in April. SycasdfssdfsmorePasdfssdfsrtners sued VictoriasdfssdfsSecretIn The deal eventually fell through after the company closed stores, laid off employees and failed to pay rent in breach of the agreement after the outbreak. </p
