As the LVMH’s deal with Tiffany & Co seems uncertain, board members of LVMH Moët Hennessy LouisVuitton have urged the two companies to reconsider the deal. Members are concerned about the impact of Coronavirus pandemic and the growing social unrest over the death of George Floyd at the hands of Minneapolis police.
The outpouring of anger over racial injustice in America has prompted widespread demonstrations in the country scuttling attempts to get the economy moving again. In addition, LVMH board members have voiced concerns about Tiffany’s ability to cover all its debt covenants at the end of the transaction, which was expected to be concluded mid-year.
As no firm decision could be made at the meeting, attendees urged the board to reconsider the deal. Combining the financial firepower of the world’s largest luxury group with the iconic American house, the deal was heralded as a master stroke by Tiffany, which could use the might of LVMH to both power its jewelry business and also gain a much larger presence in the US.