LVMH’s acquisition of Tiffany for a whopping $16.2 billion which was announced last November and was expected to be finalized in the middle of 2020 has been delayed due to the Coronavirus outbreak.
The iconic global luxury jeweler said on Wednesday that Australian regulators have sought more time to review LVMH’s purchase potentially delaying closure of one of the largest luxury goods deals ever. Tiffany and LVMH stockholders had voted to approve the adoption of the Merger Agreement providing for the Merger on February 4, 2020, while the Committee on Foreign Investment in the United States cleared the transaction on March 26, 2020.
According to a regulatory filing on April 7 with the United States Securities And Exchange Commission, Tiffany notified investors it had been held up by Australia’s Foreign Investment Review Board (FIRB). ‘As a result of the novel coronavirus (COVID-19) outbreak, the Australian Treasurer has announced that FIRB is experiencing delays in processing transactions and, in keeping with the Australian Government’s publicly announced policy of seeking six-month extensions on business applications, FIRB requested to extend its statutory review deadline of April 8, 2020, until October 6, 2020, which request LVMH has accepted. However, it is possible for the Treasurer or his delegate to approve the transaction in advance of that deadline. The parties are cooperating closely with FIRB with a view to obtaining approval as soon as possible,’ the company said.
Tiffany has however said that despite the deal being pushed back to October it is hoping to close the deal by the middle of 2020, subject to the review by the Australian Foreign Investment Review Board (FIRB).