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LVMH says it's ending acquisition of Tiffany & Co.
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French luxury brand group LVMH said on Wednesday it no longer plans to acquire iconic U.S.-based jeweler Tiffany & Co. in what was expected to be a $16.2 billion deal.
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LVMH said its board decided to no longer pursue the acquisition in light of "recent developments," including the possibility of new U.S. tariffs on French goods and Tiffany & Co.'s request to push back the deal's deadline from Nov. 24 to Dec. 31.
TIFFANY AND LOUIS VUITTON OWNER EXTEND DEAL DEADLINE
"As a results of these elements, and knowledge of the first legal analysis led by the advisors and the LVMH teams, the Board decided to comply with the Merger Agreement signed in November 2019 which provides, in any event for a closing deadline no later than November 24th, 2020 and officially records that, as it stands, the Group LVMH will therefore not be able to complete the acquisition of Tiffany & Co.," LVMH said in a statement.
Meanwhile, Tiffany & Co. says it will take legal action to ensure the deal goes through and has filed suit in Delaware.