Uncertainty prevails between the two entities. Faced with the fragility of the luxury market in the United States, the acquisition of the American jewelry house by the French giant is the subject of discussions.
According to information revealed by WWD, the LVMH board of directors met earlier this week to discuss the situation of the luxury sector in the United States and its prospects for the coming months. So few details have leaked, for the time being, the uncertainties of the market and the stock market fluctuations relating to the crisis of the Covid-19 – but also the demonstrations linked to the death of George Floyd during his arrest by the police, Minneapolis – could be a game changer. “Even if no final decision was reached at Tuesday’s meeting, participants sent a clear message: this acquisition should be reconsidered,” said the American media.
Faced with rumors, LVMH spoke in the press this Thursday, June 4. “The LVMH Moët Hennessy Louis Vuitton Board of Directors met on Tuesday, June 2, 2020 and focused in particular on the development of the pandemic and its potential impact on the results and prospects of the Tiffany company in look at the agreement between the two groups, “said the statement laconically.
At the end of November, Bernard Arnault’s group announced the acquisition of the Tiffany & Co brand in an operation estimated at some 14.7 billion euros. Faced with the current situation, LVMH could thus revise its offer, in particular by negotiating new financial conditions.
It is not the first time that the acquisition of Tiffany by LVMH is the subject of rumors at a time when the luxury industry could record a decline of -20 to -35% after the year 2020. Last March, the group had notably denied reports that it planned to intervene on the stock market in order to buy Tiffany shares in order to adjust – downwards – the amount of the transaction. Information again denied by the group in the press release published today.