On September 9, 2020, the parent company of Louis Vuitton brand, French Luxury Group, the world's largest luxury goods group, announced that it would terminate the acquisition of American jewelry brand Ti at a price of $654.38+06.2 billion.

Funi's deal means that it may have created the biggest acquisition in the history of luxury goods industry. In a public statement, the French luxury goods group said that it had received a letter from the French Ministry of Foreign Affairs, requesting to postpone the acquisition of Tiffany until next year, 65438+1October 6, in response to the crisis that the US government threatened to levy taxes on French goods. At the same time, we hope to extend the acquisition deadline from the original165438+1October 20th to 65438+February 3rd1. ?

It is for the above reasons that the French luxury goods group said that after the board of directors made a decision, it would not be able to complete the acquisition of Tiffany as it is. As a result, Tiffany's same-store sales decreased by 44% due to the epidemic. So I think Tiffany's share price will definitely be affected. In addition to the impact of the epidemic on French luxury goods groups and Tiffany. In the context of the epidemic, French luxury goods groups have the idea of renegotiating the purchase price.

Reuters quoted people familiar with the matter as saying that bernard arnault, CEO of French luxury goods group, has been trying to find a way to put pressure on Tiffany to lower the previously agreed transaction price of 135 USD per share. During the negotiation, both parties have agreed to postpone the initial acquisition deadline from August 24th to165438+1October 24th, but the negotiation relationship is still deteriorating.

It is understood that on September 9, it was reported that Tiffany accused the French luxury goods group of deliberately delaying the anti-monopoly approval process and tried to force Tiffany to restart the acquisition negotiations through other delaying measures. On Wednesday, Tiffany filed a lawsuit against the French luxury goods group in the Delaware District Court. So far, the news that the biggest acquisition in the luxury goods industry has fallen through is like this. For Tiffany's share price, I think it will definitely be affected. The size of the impact depends on the development of the epidemic.

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