French luxury goods giant LVMH and US jewelry chain Tiffany plan to finalize their $16.2 billion tie-up over the next three months. Louis Vuitton owner LVMH agreed to buy Tiffany last year in its biggest acquisition yet, betting it could restore the luster of the US jeweler by investing in spruced-up stores and new collections.
Under the deal terms, Tiffany and LVMH set August 24 as the first deadline to complete, but with the provision that one of the parties could push back that deadline as far as November 24, according to a Tiffany filing to the US Securities and Exchange Commission submitted earlier this year.
Tiffany is exercising the option to apply November 24 as the ultimate deadline, according to the source. Since the acquisition was agreed, LVMH deliberated about whether to renegotiate the deal, in part on the grounds of the impact of the COVID-19 epidemic on Tiffany’s business. But in the end LVMH decided not to seek a re-negotiation.
