AuctionsMay 06, 2025
Harwell Godfrey Reimagines 10-Carat Blue Diamond for Met Gala-Ready BroochDesigner Lauren Harwell Godfrey made the piece as an homage to the 2025 gala’s theme, “Superfine: Tailoring Black Style.”
MajorsSep 14, 2020
Tiffany-LVMH Deal May Be Saved, Say Analysts
LVMH’s acquisition of Tiffany & Co. still has a chance, albeit at a lower price.
A platinum and diamond wedding ring set from Tiffany & Co. Analysts said LVMH’s acquisition of the jeweler may still happen, if the sale price is lowered. (Photo courtesy of Tiffany & Co.)
New York—LVMH’s acquisition of Tiffany & Co. is on shaky ground after the French luxury titan announced Wednesday it would be backing out of its agreement to buy the American jeweler.
Tiffany responded with a lawsuit to force LVMH to move ahead with the deal.
In its official statement issued last week, LVMH cited closing date issues after Tiffany requested a second extension and, it said, the French government asked it to hold off until January 2021 because of proposed U.S. tariffs on French luxury goods.
Tiffany countered that LVMH was looking for a way out of the $16.2 billion deal and breached the merger agreement by dragging its feet on securing the necessary regulatory clearances.
The deal recently received regulatory approvals from the Japan Fair Trade Commission and the Mexican competition authority, according to an 8-K filing with the U.S. Securities and Exchange Commission. It is still waiting for clearances from the European Commission and the Taiwan Fair Trade Commission.
LVMH said last week it plans to file its own lawsuit in response.
It called Tiffany’s lawsuit “totally unfounded” and claimed the jeweler had prepared it “a long time ago.”
After looking over Tiffany’s first-half results, the French luxury conglomerate called its perspectives for 2020 “very disappointing and significantly inferior to those of comparable brands of the LVMH Group during this period.”
LVMH said it would be challenging in court the way Tiffany’s management handled the COVID-19 crisis, noting that the company distributed “substantial dividends” when it was losing money and that its operation and organization are not “substantially intact.”
A long legal battle is likely ahead, but analysts aren’t ready to say the deal is off just yet.
“We’re not experts in French foreign affairs but we do believe that Tiffany & Co. remains an attractive target,” wrote Needham analyst Rick Patel in a note to investors shared with National Jeweler.
RELATED CONTENT: What Tiffany’s Acquisition Means for the Jewelry Industry
The COVID-19 pandemic took a toll on Tiffany’s second-quarter results, Patel noted, but highlighted the retailer’s progress in China, digital, and its new product launches.
Those strategic areas were what LVMH was likely drawn to in the first place, he said.
However, the pandemic has led to lower retail valuations across the board, noted Patel.
The deal could go through if Tiffany is willing to lower its initial selling price of $135 per share, he said, but it’s unclear whether the jeweler is willing to do so.
Oppenheimer analyst Brian Nagel
echoed that sentiment, adding that this will likely be an ongoing negotiation.
“Our best estimate is that there now exists an 80-85% chance (down from 90%-plus) for a deal to occur at or above an acquisition price of $108/share (vs. a current offer of $135/share),” he wrote.
When talk of the deal first began, Tiffany confirmed it had received a bid for $120 per share, which would have valued the company at $14.5 billion.
Tiffany reportedly requested that LVMH up its bid to $130 per share. The final deal was for $135 per share, or $16.2 billion, one of the largest transactions in LVMH’s history.
A price reduction could salvage the deal, said Guggenheim analyst Robert Drbul.
“Considering the deal was initially negotiated in November 2019 (pre-pandemic), the deal could still be finalized, albeit at a lower price,” he wrote. “We continue to believe LVMH is the optimal buyer for Tiffany & Co., and Tiffany is a logical fit within LVMH’s portfolio of brands.”
LVMH said at the time that the addition of Tiffany could strengthen its position in the jewelry market and bolster its presence in the United States.
The acquisition would also give LVMH access to Tiffany’s vertical integration capabilities.
Tiffany established Laurelton Diamonds, a wholly owned manufacturing subsidiary, in 2002. It is a
De Beers sightholder and has also inked long-term rough supply agreements with Alrosa and Dominion Diamond.
The specialty jeweler also holds a stake in a diamond mine in South Africa owned by Canadian mining company Diamcor.
Analyst Patel also took a look back to November 2019, when LVMH first announced its acquisition plans.
In the first half of 2019, Tiffany’s business had slowed and its comps in the Americas were on the decline.
“At the time, Tiffany was known to be a self-help story that was investing in product innovation, marketing, digital and store renovation. In our view, the company remains a self-help story and is making progress on its growth initiatives despite the tough environment,” he wrote.
Looking at Tiffany as a whole, Needham lists an acceleration of same-stores sales in North America, higher-than-expected margins, and a successful introduction of new products as potential upside drivers.
Its risks include a weakening in the North American market, a greater-than-expected commodity inflation and a stronger U.S. dollar, which could hurt tourism.
Needham, Oppenheimer and Guggenheim all have a Hold rating on the jeweler.
“Our best estimate is that there now exists an 80-85% chance (down from 90%-plus) for a deal to occur at or above an acquisition price of $108/share (vs. a current offer of $135/share),” he wrote.
When talk of the deal first began, Tiffany confirmed it had received a bid for $120 per share, which would have valued the company at $14.5 billion.
Tiffany reportedly requested that LVMH up its bid to $130 per share. The final deal was for $135 per share, or $16.2 billion, one of the largest transactions in LVMH’s history.
A price reduction could salvage the deal, said Guggenheim analyst Robert Drbul.
“Considering the deal was initially negotiated in November 2019 (pre-pandemic), the deal could still be finalized, albeit at a lower price,” he wrote. “We continue to believe LVMH is the optimal buyer for Tiffany & Co., and Tiffany is a logical fit within LVMH’s portfolio of brands.”
LVMH said at the time that the addition of Tiffany could strengthen its position in the jewelry market and bolster its presence in the United States.
The acquisition would also give LVMH access to Tiffany’s vertical integration capabilities.
Tiffany established Laurelton Diamonds, a wholly owned manufacturing subsidiary, in 2002. It is a
De Beers sightholder and has also inked long-term rough supply agreements with Alrosa and Dominion Diamond.
The specialty jeweler also holds a stake in a diamond mine in South Africa owned by Canadian mining company Diamcor.
Analyst Patel also took a look back to November 2019, when LVMH first announced its acquisition plans.
In the first half of 2019, Tiffany’s business had slowed and its comps in the Americas were on the decline.
“At the time, Tiffany was known to be a self-help story that was investing in product innovation, marketing, digital and store renovation. In our view, the company remains a self-help story and is making progress on its growth initiatives despite the tough environment,” he wrote.
Looking at Tiffany as a whole, Needham lists an acceleration of same-stores sales in North America, higher-than-expected margins, and a successful introduction of new products as potential upside drivers.
Its risks include a weakening in the North American market, a greater-than-expected commodity inflation and a stronger U.S. dollar, which could hurt tourism.
Needham, Oppenheimer and Guggenheim all have a Hold rating on the jeweler.
More on Majors
The Latest
Events & AwardsMay 06, 2025
Here’s Who Made Jewelers of America’s New ‘20 Under 40’ ListExpanded this year to include suppliers, JA’s 2025 list honors 40 up-and-coming professionals in the jewelry industry.
IndependentsMay 06, 2025
Sissy's Log Cabin Opens New StoreLocated in Fort Smith, it’s the Mid-South jeweler’s first store in Northwest Arkansas.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
IndependentsMay 06, 2025
Gunderson’s Jewelers to Be Featured on ‘World’s Greatest’ TV SeriesThe episode about the family-owned jeweler will premiere May 17.
Weekly QuizMay 01, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsMay 05, 2025
Zadok Jewelers Opens Store in AustinThe Houston-based jeweler’s new 11,000-square-foot showroom will include a Rolex boutique.
AuctionsMay 05, 2025
Nancy Astor’s Cartier Tiara Heads to AuctionThe turquoise and diamond tiara hasn’t been on the market since it was purchased by Lord Astor in 1930.
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest AdditionSupplier Spotlight Sponsored by GIA
SourcingMay 05, 2025
Crater of Diamonds Yields 4-Carat Brown Diamond“The Duke Diamond” is the largest diamond registered at the Arkansas park so far this year.
TrendsMay 02, 2025
Ring Concierge, Kraft Partner on Mother’s Day Macaroni Necklace The childhood craft of making dried pasta necklaces for Mother’s Day is all grown up as the 14-karat gold “Forever Macaroni” necklace.
CollectionsMay 02, 2025
Piece of the Week: Angely Martinez’s Emerald Promise RingSet with May’s birthstone and featuring an earthworm, this ring is a perfect celebration of spring.
SourcingMay 01, 2025
Tariffs & Colored Gemstones: Relying on Stock, Considering the Ripple EffectThough currently paused, high tariffs threaten many countries where gemstones are mined. Dealers are taking measures now to prepare.
TrendsMay 01, 2025
Amanda’s Style File: 20 Pieces of Emerald Jewelry for MayMay babies are lucky indeed, born in a month awash with fresh colors and celebrated with one of the most coveted colored gemstones.
MajorsMay 01, 2025
Jewelers of America Opens Applications for 2025 ScholarshipsThe deadline to apply for the Seymour & Evelyn Holtzman Bench Scholarship is June 12.
SurveysApr 30, 2025
Consumer Confidence Hits Pandemic-Level Low Amid Tariff ConcernsWhat’s really worrying U.S. consumers isn’t the present situation; it’s what the economy is going to look like six months from now.
Events & AwardsApr 30, 2025
Instore Show Debuts New Name, Look, and FocusNow called The Instore Jewelry Show, it will include holiday-focused education, interactive workshops, and a window display contest.
SourcingApr 30, 2025
GemGuide Has a New Pricing Chart for Colombian EmeraldsIt includes pricing for unenhanced Colombian emeralds in the fine to extra fine range.
CollectionsApr 30, 2025
Tiffany & Co. Goes Deep-Sea Diving in New Blue BookThe “Sea of Wonder” collection features pieces inspired by the ocean, from its waves to flora and creatures like urchins and sea turtles.
AuctionsApr 29, 2025
‘Golconda Blue’ Diamond Pulled From AuctionThe 23-carat fancy vivid blue diamond, set to headline Christie’s May jewelry auction, was expected to sell for as much as $50 million.
IndependentsApr 29, 2025
Maryland Jeweler to Close After 36 YearsG.B. Heron Jewelers in Salisbury, Maryland, is set to close as its owner, Jeff Cassels, retires.
ColumnistsApr 29, 2025
Google Ads vs. Social Media Ads: Which Are More Effective?Emmanuel Raheb outlines the differences between the two platforms and posits that the most successful jewelers use both.
SourcingApr 29, 2025
Gemfields Mini Ruby Auction Achieves $7MThe miner said its April sale featured a mix of commercial-quality primary rubies and secondary rubies of varying quality.
CrimeApr 28, 2025
Customs Seizes Nearly 2,000 Pieces of Counterfeit Van Cleef & Arpels JewelryU.S. customs agents in El Paso, Texas, intercepted the package, which would have been worth $9 million if the jewelry was genuine.
TrendsApr 28, 2025
Suzanne Kalan Launches Tech Ring Jacket CollectionHealth monitors become statement pieces when paired with the brand’s new collection of stackable diamond-studded bands.
Events & AwardsApr 28, 2025
JCK Industry Fund Announces 2025 Grant RecipientsTen organizations were selected this year.
IndependentsApr 28, 2025
John Atencio Appoints 2 to Wholesale TeamKim Carpenter and Sam Gevisenheit have joined the brand.
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.
