French luxury conglomerate, LVMH has denied plans to buy Tiffany & Co shares on the open market.
Last week, Bloomberg stated that “people familiar with the matter” reported the luxury conglomerate was considering buying shares of the jewellery brand for less on the open market.
On Monday, LVMH stated in a terse press release: “Rumors circulated recently indicating that LVMH would consider buying Tiffany shares on the open market.”
“These rumors lead LVMH to recall that, in accordance with the agreement concluded with Tiffany in November 2019, LVMH is currently committed not to buy Tiffany shares.”
Last year, LVMH confirmed it would buy Tiffany & Co for $16.2 billion. In February, LVMH was also expected to raise 9.3 billion euros from bond markets to help finance the deal, which is expected to be completed in the middle of 2020.
Since that deal was struck, the worldwide outbreak of Coronavirus has caused global stock markets to plummet and halted business activities, leading to the disruptions of potential business acquisitions and impacting industry relationships.