Citing delay in the closing date, French luxury group LVMH has called off its acquisition of American jewellery giant Tiffany & Co amid the ongoing trade tensions between France and the US.
The company said in a statement that it had received a letter from the French government, directing it to defer the acquisition of Tiffany until after January 6, 2021.
“The board 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 defer the acquisition of Tiffany until after January 6, 2021,” the Louis Vuitton parent said.
The development comes amid a recent threat of imposition of tariffs on French products by the US.
The deal, struck in November 2019, ran into trouble after COVID-19-induced lockdowns closed shops globally and halted international travel, hitting demand for luxury goods badly.
