×
278
Fashion Jobs
MAJE
Supervisor - Selfridges, London
Permanent · LONDON
BURBERRY
CRM Manager
Permanent · LONDON
TOPSHOP TOPMAN
CRM Coordinator
Permanent · London
TOPSHOP TOPMAN
Senior Marketing Manager
Permanent · London
ARCADIA GROUP
SEO Manager
Permanent · LONDON
ARCADIA GROUP
Digital Logistics Manager
Permanent · London
NEXT RETAIL LTD
Buyer - Womenswear (12 Month Contract)
Permanent · ENDERBY
GUCCI LIMITED
Gucci Visual Merchandising Manager
Permanent · LONDON
NEXT RETAIL LTD
Warehouse Operative (Part Time Afternoons - 14.00 - 20.00)
Permanent · PONTEFRACT
TOSHI TECHNOLOGIES LTD
London Experience And Operations Manager
Permanent · LONDON
TJX CORPORATE
Information Technology Graduate (2021)
Permanent · WATFORD
SHISEIDO
UK Supply Planner
Permanent · LONDON
NEXT RETAIL LTD
Loss Prevention Officer - Preston 721
Permanent · WALTON-LE-DALE
DESIGNER EXCHANGE
Digital Marketing Manager
Permanent · LONDON
SHISEIDO
Bareminerals Account Manager - Hoopers, Wilmslow (Maternity Cover) (37.5)
Permanent · Manchester
SHISEIDO
Bareminerals Account Manager - Debenhams, Winchester (Maternity Cover)
Permanent · Hampshire
SHISEIDO
Account Manager - Debenhams
Permanent · BURY SAINT EDMUNDS
SHISEIDO
Bareminerals Account Manager - Debenhams, Ipswich (37.5)
Permanent · Ipswich
SHISEIDO
Shisiedo Group Fragrance Account Manager - John Lewis, Brent Cross (22.5)
Permanent · London
NIKE
Nike Temporary Part Time Athlete (Sales Associate)
Fixed-term · Bideford
NIKE
Nike Temporary Part Time Athlete (Sales Associate)
Fixed-term · Portsmouth
REISS
Assistant Branch Merchandiser
Fixed-term · LONDON

LVMH’s Guiony insists that ministerial decision makes pulling out of Tiffany deal a fait accompli

Published
Sep 9, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

The world’s largest luxury company LVMH insisted Tuesday that its decision to pull out of the agreement to buy Tiffany & Co, its biggest ever acquisition, was simply due to a letter from the French Foreign Ministry instructing it to delay its $16.2 billion takeover of the American jewellery company.


Tiffany - Instagram (@tiffanyandco)


“We cannot continue with this deal anymore,” insisted Jean-Jacques Guiony, LVMH Group CFO, in a conference call to financial press, completely blaming the French government for the change of plans.

“We cannot impose a deal structure that is totally unclear. So, we will not move ahead with this due to this technical reason. We have to comply with the terms of the letter,” Guiony insisted.

In a statement from LVMH before the conference call, the luxury conglomerate claimed its board had “learned of a letter from the French European and Foreign Affairs Minister which, in reaction to the threat of taxes on French products by the US, directed the Group to differ the acquisition of Tiffany until after January 6th, 2021.” Furthermore, the board noted Tiffany & Co requested to "extend the “Outside Date” in the Merger Agreement from November 24th to December 31st, 2020.”

Meaning the government mandated delay fell after the closing deadline of November 24th, 2020, thus preventing LVMH from being able to complete the acquisition of Tiffany.

Asked directly whether LVMH planned to seek compensation from the French government, Guiony demurred on the grounds that one cannot contest a ministerial directive.

“They (the government) just tell you what they expect you to do. They just made it clear in the context of trade discussions we have to postpone it until January 2021. That’s it,” said the CFO, speaking in English, adding that LVMH had sent a letter on to Tiffany along with a French translation of the minister’s instruction.

“It’s not a story we invented yesterday. It’s a pretty brief letter and they (the ministry) didn’t explain why they didn’t want this to happen. It’s a valid letter and the government has the right to do this.”

In response, Tiffany have already announced plans to contest this decision in court, but Guiony insisted that LVMH was confident of its legal position.

“I hardly see how a judge in Delaware, on seeing a valid French letter from a minister instructing a French company, could ignore that. That’s what this is about. This is where we are with the lawsuit, let’s see what happens.”



 

Copyright © 2020 FashionNetwork.com All rights reserved.