LVMH has urged Tiffany’s to reduce its deal price to enable LVMH to buy the US jeweler. The original price for the deal was $135 per share, or about $16 billion in total. By taking control of Tiffany, LVMH would gain better access to the worldwide luxury jewelry market. Reduction in deal price would allow the companies to avoid a courtroom battle after the deal they struck a year ago turned sour amid COVID-19’s upheaval of global luxury spending.
LVMH had argued that Tiffany has botched its response to COVID-19 and this has created a material adverse effect that will allow it to invalidate the agreement. Tiffany had countered that its sales are improving and the deal should proceed as planned. The deal had been cleared by European Union antitrust officials earlier this week. However, LVMH applied for the regulatory review saying that it was unable to complete the transaction due to the French government’s request to delay it.
The Louis Vuitton owner said that its move to proceed with the EU filing for regulatory approval showed that it was acting in good faith, which Tiffany had earlier questioned.