The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — French luxury goods group LVMH is set to gain EU antitrust approval for its acquisition of US jeweller Tiffany, people familiar with the matter said.
The EU decision comes amid a legal battle between LVMH and Tiffany, with the latter suing the Louis Vuitton owner in a Delaware court, alleging that the French company has deliberately been stalling the completion of the deal.
Tiffany has alleged that LVMH has improperly tried to renegotiate the deal, which was agreed in November last year before the COVID-19 pandemic emerged and hit countries and companies worldwide.
LVMH has countersued Tiffany, alleging that the U.S. company has been mismanaged during the COVID-19 pandemic.
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The European Commission, which is scheduled to decide on the deal by Oct. 26, declined to comment. LVMH and Tiffany did not immediately respond to a request for comment.
The two companies had several overlaps in some areas but these are not serious enough to trigger competition concerns, the people said.
The U.S. Committee on Foreign Investment and antitrust enforcers in Australia, Canada, China and South Korea have already given the green light to the deal.
By Foo Yun Chee, Silvia Aloisi in Milan and Aishwarya Venugopal; Editor: David Goodman and Jane Merriman
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.