LVMH’s acquisition of Tiffany’s & Co has been stalled due to the global pandemic and Black Lives Matter protests, which has caused an economic fallout which now has LVMH reconsidering it’s $16.2 billion buyout of the luxury jewelry company.
Situation’s continue to jeopardize what would be the largest luxury buyout in history. On Tuesday June 2nd Tiffany & Co shares fell 9%, fueling fears that Tiffany will not be able to meet it’s debt repayment obligations stipulated in the buyout deal.
A board meeting on Monday by LVMH in Paris to discuss the takeover deal with management, showed major concern with the economic fallout caused by Covid-19 and racial unrest as first reported by WWD, putting the deal in doubt. No decision has been reached as of yet.