Please ensure Javascript is enabled for purposes of website accessibility

Tiffany’s Acquisition by LVMH Is Pushed Back to October

By Rhian Hunt - Apr 8, 2020 at 1:13PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Regulatory problems in Australia cause a delay in the closing.

Though Tiffany & Co. (TIF) and LVMH Moët Hennessy (LVMHF -1.58%) appeared poised to "put a ring on it" following a $16.2 billion acquisition deal last November, the nuptials have been postponed by a regulatory snag in Australia. The review was originally supposed to arrive by April 8, but the reviewing board has pushed back the date by half a year, citing administrative delays.

LVMH, the owner of approximately 75 subsidiary luxury and fashion brands including Louis Vuitton, Givenchy, Bulgari, Kenzo Parfums, Parfums Christian Dior, and many others, agreed to pay roughly $135 per share to buy out Tiffany. LVMH recently eschewed the opportunity to reduce the purchase price by buying up Tiffany stock after its share value took a hit from the COVID-19 pandemic, instead sticking with its original offer

A diamond wedding ring and engagement ring.

Image source: Getty Images.

The two companies have secured most of the approvals needed to complete the deal and move Tiffany under the LVMH umbrella as planned. Shareholder approval came in February, while the U.S. Securities and Exchange Commission (SEC) gave its blessing to the union on March 26. The European Commission is still in talks with Tiffany and LVMH.

The Australian Foreign Investment Review Board, or FIRB, originally slated statutory review for April 8. However, an 8-K Current Report filed with the SEC by Tiffany reveals the coronavirus pandemic has prompted the FIRB to request a six-month postponement to Oct. 6. While LVMH has officially accepted the delay, it also notes the Australian Treasurer has the power to approve the acquisition sooner, and "the parties" -- meaning LVMH and Tiffany -- have "a view to obtaining approval as soon as possible."

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tiffany & Co. Stock Quote
Tiffany & Co.
TIF
LVMH Moët Hennessy - Louis Vuitton, Société Européenne Stock Quote
LVMH Moët Hennessy - Louis Vuitton, Société Européenne
LVMHF
$705.47 (-1.58%) $-11.32

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
397%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.