Home US LVMH scraps $16.2 billion deal with Tiffany

LVMH scraps $16.2 billion deal with Tiffany

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A Tiffany & Co. employee wears a protective mask as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on August 1, 2020 in New York City. The fourth phase allows outdoor arts and entertainment, sporting events without fans and media production.

Cindy Ord | Getty Images Entertainment | Getty Images

Louis Vuitton owner LVMH is scrapping its $16.2 billion acquisition of Tiffany.

The luxury goods giant said that the merger agreement signed in November provides for a closing deadline no later than Nov. 20, 2020. But Tiffany had extended to request the date to Dec. 31, and the French minister of foreign affairs had directed the company to defer the deal until after Jan. 6 due to a U.S. threat of taxes on French goods.

A representative for Tiffany did not immediately respond to a request for comment from CNBC. The Wall Street Journal reported that the U.S. jewelry chain has filed a lawsuit in Delaware to enforce the agreement, saying the request from the French foreign ministry has no basis in law.

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