Mauvelli
Mauvelli
Mauvelli
  • Home
  • Services
  • Resources
    • Blog
  • Copywriting Bootcamp
  • Uncategorized

LVMH Recently Pulled Out Of A $16.2 Billion Deal With Tiffany&Co. Here Is Everything That Happened

  • September 10, 2020
  • Mauvelli
Total
0
Shares
0
0
0

A luxury goods company like LVMH is one that keeps growing with higher profit margins, as a result of increased consumer spendings. LVMH is a French multinational luxury goods company that has over 70 brands in the Fashion and Leather Goods, Perfumes and Cosmetics, and Watches and Jewellery industries.

One of the strategies that the luxury goods group has implemented over the years is growing through acquisitions. By acquiring various brands and numerous stores in different countries, they have steadily expanded their global reach. The LVMH brand made a decision last year to acquire American Jewellery brand, Tiffany and Co., however, the deal fell through recently.

Why was this decision taken, and what does this mean for both brands?

About Tiffany And Co.

Tiffany and Co. is an American luxury jewellery and speciality retailer that deals in jewellery, sterling silver, watches, personal accessories and leather goods for customers. The brand has been in existence for over 180 years, with global stores in different countries.

Tiffany and Co. is known for its luxury goods, particularly its diamond and sterling silver jewellery, and has over the years marketed itself as an arbiter of taste and style.

About The Acquisition Deal

In November 2019, LVMH announced their decision to purchase Tiffany and Co. for 16.2 billion USD to be able to compete with top luxury goods companies such as Kering and Richmond who have numerous jewellery brands under them.

Apart from that, this deal would have allowed LVMH to position themselves in North America and build on their foundation in the jewellery market.

For the Tiffany and Co. brand, this deal would have enabled them to freshen their products and would have helped them grow overseas as well since they have been criticized consistently for lacking innovation.

However, the surety of all these currently dwindles.

Why then is LVMH pulling out?

Since the deal was announced, both companies had been shifting the deadlines for the closing deals for various reasons. The most recent extension was requested by Tiffany to Dec 31, and this is one of the reasons cited by the LVMH group not to complete the deal again.

The major reason for the pulling out, however, is the fact that the LVMH Group had been requested by the French government to delay the takeover due to tariff threats from the United States of America. According to the board, based on a letter gotten from the French Foreign Affairs Minister asking them to delay the acquisition until January 6, 2021, the United States government is threatening to impose tariffs on French goods.

This did not sit well with the board of Tiffany and Co., however, as they feel the LVMH group is trying to use any available means in an attempt to avoid closing the transaction on agreed terms. And as the chairman, Roger Farah, shared,

“We regret having to take this action but LVMH has left us no choice but to commence litigation to protect our company and our shareholders.”

This deal would have increased Tiffany and Co.’s chances of growing outside America, increasing their value, improving their retail network as well as expanding their product offerings to both countries. It would have also provided the LVMH group with a more modern and accessible jewellery brand compared to the ones in their portfolio.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Mauvelli

Subscribe

Get timely fashion business insights that will help you build your brand.

You May Also Like
Easter Lauder and Amanda Gorman
View Post
  • Uncategorized

Estee Lauder Names Amanda Gorman First Global Changemaker, TikTok Announces #TikTokFashionMonth and More

  • Iyinoluwa Oludiya
  • September 10, 2021
View Post
  • Fashion Business
  • Uncategorized

7 Ways To Increase The Profit Margin In Your Fashion Business

  • Iyinoluwa Oludiya
  • June 8, 2021
View Post
  • Uncategorized

These Are The 6 Hottest Instagram Looks in White That We Saw This Week

  • Iyinoluwa Oludiya
  • May 29, 2021
View Post
  • Uncategorized

Oluwapelumi Adesina’s 6 Tips To Help You Choose The Perfect Gele Style And Makeup Look For Clients

  • Iyinoluwa Oludiya
  • May 10, 2021
View Post
  • Uncategorized

See How to Achieve This Flawless Chocolatey Owanbe Look By Oluwapelumi Adesina

  • Iyinoluwa Oludiya
  • May 6, 2021
What fashion investors are thinking
View Post
  • Fashion Business
  • Promo Premium
  • Uncategorized

Read This Before Pitching Your Fashion Brand to an Investor

  • Mauvelli
  • May 6, 2021
jeff bezos
View Post
  • Uncategorized

Resource: Download Amazon CEO, Jeff Bezos, Shareholder Letters

  • Mauvelli
  • April 12, 2021
View Post
  • Uncategorized

African Brands: Asides Adding Sequins And More On African Fabrics, Here’s What Makes The Lisa Folawiyo Brand Unique

  • Mauvelli
  • January 12, 2021
5 comments
  1. gamefly says:
    April 10, 2022 at 10:47 am

    I’m really enjoying the theme/design of your web site.
    Do you ever run into any internet browser compatibility problems?
    A couple of my blog audience have complained about my site
    not operating correctly in Explorer but looks great in Chrome.
    Do you have any ideas to help fix this issue?

  2. discount flights says:
    April 6, 2022 at 9:06 am

    Hi everyone, it’s my first visit at this web site, and paragraph is
    really fruitful for me, keep up posting these types of content.

  3. cheapest international airline tickets possible says:
    April 4, 2022 at 6:20 pm

    Hey there are using WordPress for your blog platform? I’m new
    to the blog world but I’m trying to get started and set up my own.
    Do you need any html coding expertise to make your own blog?
    Any help would be really appreciated!

  4. fly cheap says:
    April 3, 2022 at 6:57 pm

    Hi there, of course this post is actually nice
    and I have learned lot of things from it on the topic of blogging.
    thanks.

  5. last minute flights says:
    April 2, 2022 at 10:52 pm

    I really like what you guys are up too. This type of clever work and exposure!
    Keep up the very good works guys I’ve you guys to our blogroll.

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts
  • 6 Steps to Review Your Marketing Strategy for Better Results
  • How to Write Content That Inspires People To Act in 3 Steps
  • Learn Highly-Paid Writing Skills – Become an insanely good Copy and Content Writer in The Verge Accelerator
  • How To Conduct A SWOT Analysis For Your Fashion Business For Better Business Decision Making
  • Is Mauvelli Going Out Of Business? – Editorial
Categories
  • Business poems
  • Collections
  • Fashion
  • Fashion Business
  • Fashion News
  • fashiontech
  • In my closet
  • Insiders
  • Marketing
  • People work
  • Premium
  • Promo Premium
  • Series
  • Services
  • Trending
  • Uncategorized
  • What they think