LVMH cancels its $16B wedding with Tiffany, conveniently blaming tariffs
Call the caterers and florists... Breakfast at Tiffany's is canceled, along with the whole wedding. French luxury giant LVMH just called off its $16.2B deal to acquire jewelry legend Tiffany. LVMH owns 75 luxie-luxe brands, including Louis Vuitton, Dom Pérignon, Dior, and Fenty. The wedding would've been the biggest ever for the luxury industry.
- Almost a year ago, LVMH asked for Tiffany's hand. They signed engagement papers for a merger that was to happen no later than Nov. 24, 2020.
- Then, French Foreign Minister Jean-Yves Le Drian (classic) asked LVMH to delay the ceremony to Jan. 6, citing the threat of extra US tariffs.
- Yesterday, LVMH used Drian's letter to tell Tiffany: "The deal cannot happen. We are prohibited from closing the deal." France says the request was just advice (awk). Now Tiffany is suing.
Très dramatique breakup... to be expected when $16B is on the line. The US has threatened tariffs on luxury French goods in retaliation for France’s taxes on big American tech companies. LVMH is using the possible hit to its sales from tariffs to justify dropping the pricey deal. If LVMH's breakup goes through, Tiffany will have to hop back on the luxury dating apps (Tinder Platinum Gold?).
This isn’t about tariffs - it’s about overpaying... LVMH couldn't have asked for better timing for the letter. It doesn't want to spend $16B on a corona-battered company: Tiffany’s global sales plunged 29% from April to July and 45% the previous quarter. Consumers weren't shopping in key luxury markets, while fewer weddings meant fewer $20K engagement rings. LVMH CEO Bernard Arnault had said Tiffany would “thrive for centuries to come” as part of his company. "Til Death Do Us Part" isn't panning out.