On the evening of June 4, Beijing time, according to US financial media CNBC, if the LVMH Group wants to renegotiate the terms of the acquisition, Tiffany & Co. is ready to file a lawsuit.
LV parent company LVMH Group reached an agreement with Tiffany in November last year and agreed to acquire the latter at a price of USD 16.2 billion, but the acquisition has not yet been completed. The outbreak of the New Coronary Pneumonia epidemic and the recent large-scale demonstrations in the United States gave the LVMH Group the idea of renegotiating the purchase price.
Reuters quoted insiders as reporting that LVMH Group CEO Bernard Arnault has been negotiating with his consultants this week to try to find pressure on Tiffany to reduce The transaction price of $135 per share previously agreed by both parties.
The source said that the LVMH Group has not yet decided whether to adopt a price reduction strategy or requested Tiffany to restart negotiations, and it is unclear whether it will do so.
The source also revealed that although Arnault is concerned about the excessive purchase price of $16.2 billion, it is still confident in the deal and believes that Tiffany will make the LVMH group in It has a larger share of the US market, higher profits, and expanded the group’s supply in the jewelry sector. Currently, jewelry is the fastest growing sector in the luxury industry.
Reuters pointed out that after the outbreak of the new coronary pneumonia, many acquirers have abandoned or renegotiated previously agreed projects. In the retail industry, private equity firm Sycamore Partners gave up the $525 million acquisition of a majority stake in Victoria’s Secret, a subsidiary of L Brands.
In the report, Bain Consulting pointed out that due to the new crown epidemic, offline stores of global luxury goods have been closed, and multinational tourism has stalled. It is expected that high-end luxury goods will be this year. Of global sales will fall by 35%.