Luxury goods powerhouse LVMH on Thursday said its board had met this week to discuss how the virus crisis may impact its $16.2 billion deal to buy US jeweller Tiffany.
LVMH, the owner of fashion brands including Louis Vuitton and Celine, in November 2019 agreed to buy Tiffany, known for its diamond engagement rings, for $135 per share.
That was before the coronavirus outbreak, which has caused major headaches for the luxury goods sector, with sales impacted by travel restrictions and shops having to close during lockdowns.
There have been recent reports that the deal is looking less certain, but LVMH today quashed rumours it would buy Tiffany shares at a discount in the market.
There have previously been rumours that LVMH would consider buying Tiffany shares on the open market, a potential way it could buy the jeweller at a lower price. Shares in Tiffany closed at $114 on Wednesday.
LVMH, led by Bernard Arnault today, said: “The board of directors of LVMH Moët Hennessy Louis Vuitton, met on Tuesday, June 2nd, 2020 and notably focused its attention on the development of the pandemic and its potential impact on the results and perspectives of Tiffany & Co with respect to the agreement that links the two groups.”
The company added: “Considering the recent market rumours, LVMH confirms, on this occasion, that it is not considering buying Tiffany shares on the market.”
