[CNBC Television] LVMH warns it may walk away from Tiffany deal

🎯 Загружено автоматически через бота: 🚫 Оригинал видео: 📺 Данное видео принадлежит каналу «CNBC Television» (@CNBCtelevision). Оно представлено в нашем сообществе исключительно в информационных, научных, образовательных или культурных целях. Наше сообщество не утверждает никаких прав на данное видео. Пожалуйста, поддержите автора, посетив его оригинальный канал. ✉️ Если у вас есть претензии к авторским правам на данное видео, пожалуйста, свяжитесь с нами по почте support@, и мы немедленно удалим его. 📃 Оригинальное описание: LFMH is warning it’s set to walk away from its planned takeover of the U.S. jewler Tiffany due to complications arising over the deal. Tiffany now says it will sue LVMH over the delayed $16 billion deal. CNBC’s Becky Quick reports. For access to live and exclusive video from CNBC subscribe to CNBC PRO: Louis Vuitton owner LVMH is scrapping its $16.2 billion acquisition of Tiffany, a deal that would have been the biggest ever in the luxury industry. The luxury-goods giant said Wednesday the merger agreement signed last November provides for a closing deadline no later than Nov. 20, 2020. But Tiffany had requested to extend the date to Dec. 31, and the French minister of foreign affairs had directed the company to defer the deal until after Jan. 6 due to a U.S. threat of taxes on French goods. The company said in a statement that it will not be able to complete the acquisition of Tiffany “as it stands.” It said it needs additional time to figure out any impact from potential U.S. tariffs on French goods, and therefore can’t close the deal before the end of the year. Tiffany shares tumbled 10% in early trading Wednesday. Tiffany shares, which have a market value of $14.8 billion, have fallen nearly 9% this year. A representative for Tiffany did not respond to a CNBC request for comment. The Wall Street Journal reported that the U.S. jewelry chain has filed a lawsuit in Delaware to enforce the agreement, saying the request from the French government has no basis in law. The coronavirus pandemic has hit the luxury retail sector hard, sending Tiffany’s same-store sales down 44% and throwing the LVMH deal into doubt. Investors worried whether the French company overpaid, and LVMH CEO Bernard Arnault was looking to lower the price of buying the U.S. jewelry chain, according to people familiar with the matter. Amid the turmoil, LVMH and Tiffany had agreed to push back an initial deadline from Aug. 24 to Nov. 24, as talks started to sour. Analysts had said they believed the transaction was still going to go through, but at a lower price. With international tourism seemingly dragged to a halt, Tiffany’s and other luxury retailers’ businesses have been battered, as many relied on big spenders from China venturing to their flagship shops in the U.S. to splurge on handbags and diamonds. In buying Tiffany, LVMH had been looking to grow its jewelry business, which had been one of the hottest and fastest-growing categories in luxury until the pandemic hit. At the time of Tiffany’s earnings report in early June, the company was still waiting to clear key regulatory hurdles for the deal. Some other retail-related deals have been called off because of the pandemic. The biggest U.S. mall owner Simon Property Group has terminated its deal to buy the high-end mall owner Taubman, prompting Taubman to file a counterclaim against Simon’s accusations. The private-equity firm Sycamore also backed out of its deal to take over Victoria’s Secret from L Brands. » Subscribe to CNBC TV: » Subscribe to CNBC: » Subscribe to CNBC Classic: Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: Follow CNBC News on Twitter: Follow CNBC News on Instagram: For info on the best credit cards go to CNBC Select: #CNBC #CNBCTV