Tiffany Files Lawsuit Against LVMH To Enforce Merger Agreement
Tiffany and Company is suing LVMH Moët Hennessy-Louis Vuitton in the Delaware Chancery Court alleging that there was a breach of a merger agreement between the two companies.
LVMH Moët Hennessy-Louis Vuitton said it is unable to complete the acquisition of Tiffany & Company and had to purchase the jeweler for $16.2 billion. The merger was with agreed by both parties that it would be an outstanding Alliance. In particular helping Tiffany with the resources and speed for sustainable growth.
Tiffany says they had no choice but to sue LVMH due LVMH’s delays in applying for antitrust clearance in certain countries citing a breach of their agreement.
Prior to Covid-19 for Q2 Tiffany saw 29% sales tumble in the quarter but was better than the 45% dive of the first quarter. Net earnings decreased 77% to $31.9 million, as gross profit reached $461.6 million.
As of August 24, 2020, LVMH had not even filed for antitrust approval in three of the required jurisdictions. Because all other conditions to closing were met on that date, Tiffany elected to extend the outside date to November 24, 2020. However, this extended outside date is now less than three months away, and LVMH still has not filed formal requests for antitrust approval in the European Union or Taiwan, and applications are still outstanding in Japan and Mexico, all due to LVMH’s concerted efforts to delay or avoid receipt of regulatory approvals in those jurisdictions in breach of the Merger Agreement. Source: Tiffany