LVMH and Tiffany Are Caught in an Escalating Legal Battle
There are two ways this can go.
Francis Scialabba
• less than 3 min read
The largest brand acquisition in modern luxury history is off. Now, LVMH and Tiffany are three rounds deep in legal ping-pong over the terms of their canceled $16.2 billion merger.
- LVMH shared plans to scrap its Tiffany takeover Wednesday, citing trade disputes between the U.S. and France. The same day, Tiffany filed a lawsuit demanding LVMH stick with it.
- Then on Thursday, LVMH countersued. The claims: Tiffany was dishonest during proceedings, and a mix of financial losses and general mismanagement tarnished the deal further.
What comes next?
Most likely: LVMH leverages the impending legal battle to chip away at the initial acquisition price. So LVMH will eventually put a ring on it, but on the cheap.
Somewhat likely: LVMH and Tiffany trade affidavits before agreeing to scrap the deal. (That’s what happened with the failed Sycamore-Victoria’s Secret takeover back in May.) Afterward...
- Tiffany attracts another buyer, like jewelry leader Richemont.
- LVMH reassesses its ambitions to expand in the U.S. and fortify its nascent jewelry arm.
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