LVMH’s £13bn takeover of Tiffany & Co placed into doubt

French luxury conglomerate, LVMH’s £13 billion acquisition of Tiffany & Co has been thrown into doubt as the jewellery retailer grapples with a major upheaval in the US economy. Tiffany’s shares fell nearly 9% after the news.

On Tuesday night, LVMH’s board called a meeting in Paris to discuss the matter, WWD reported. The French luxury board has voiced concerns about the Coronavirus pandemic and protests connected to the death of George Floyd at the hands of Minneapolis police, according to the report.

In addition, WWD reported, LVMH’s board also raised the issue of Tiffany’s ability to cover its debt  at the end of the transaction, this was expected to be resolved mid-year.

Last year, LVMH confirmed it would buy Tiffany & Co for $16.2 billion, which is considered  its biggest acquisition yet.

Should this still go ahead, Tiffany & Co will be joining LVMH’s stable of jewellery brands such as Tag Heuer and Hublot.