By John Smith •
Published: 09 Sep 2020 • 17:51
A GREAT deal has happened since last autumn when French luxury brand LVMH which has interests in Luis Vuitton, Moët, Hennessy and much more announced that it would take over Tiffany & Co for an eye watering $16 billion (€13.5 billion).
It was to be the largest ever acquisition in the world of luxury goods but it started to stutter from the very beginning as the French Government asked LMVH to postpone the deal due to the threat of the US Government to heavily tax French products.
In addition, Tiffany itself also requested a delay until January 2020 but was still ready to go ahead and had recommended the takeover to shareholders.
Then along came Covid-19 as due diligence was being undertaken and sales of all sorts of goods suffered and global sales of luxury goods are reported to have dropped by around 50 per cent following the global lockdown.
Tiffany are not happy however as their board believes that it has complied with all of the requirements of the agreement so is taking action in the US Courts asking for an order to instruct LVMH to honour the contract.
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Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica.
Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene.
Currently he is acting as Editorial Consultant for the paper helping to shape its future development.
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