According to foreign media reports, LVMH, the parent company of Louis Vuitton, announced its decision to terminate the acquisition of Tiffany. LVMH was prepared to acquire Tiffany, an American jewelry brand, for $65.438+0.62 billion, but in the end, this acquisition plan, which is about to become the most expensive luxury jewelry in history, failed. The reason is related to the US tariff policy. According to reports, LVMH informed Tiffany that it wanted to postpone the transaction, because LVMH received a notice from the French government. If they buy Tiffany as planned, it is likely that the Trump administration will impose high tariffs on France. So LVMH hopes to wait until the next year, which is 1 in 20265438. But Tiffany's company was very dissatisfied after receiving this notice. They believe that LVMH did not tell Tiffany's company the news at the first time after receiving the notice, and that such a trip of LVMH will lead to the destruction of the acquisition plans of both parties. Therefore, Tiffany Company sued LVMH Company on the grounds that LVMH Group deliberately delayed the anti-monopoly approval, and tried to make Tiffany renegotiate the acquisition through this behavior. Now Tiffany has appealed. It turns out that according to the agreement reached by the two companies, the latest time that the acquisition between them can be postponed is165438+1October 24th. Now LVMH Group has said that it will continue to postpone, which is obviously a violation of the agreement. Moreover, the acquisition transaction between them has not been approved, and the EU card is very strict. LVMH Group executives have been worried about whether Tiffany Jewelry can fully pay off the debts owed before the acquisition. If the acquisition of LVMH Group and Tiffany is terminated, Tiffany Jewelry may face two situations. One is to declare bankruptcy, because Tiffany jewelry itself has many debts that have not been paid off. Another possibility is to be acquired by other luxury goods companies, but the price will definitely be lower. Either way, it is not a good result for LVMH and Tiffany. The reputation of LVMH is damaged, and the relationship with Tiffany Company is deteriorating, which will bring many negative effects to LVMH. Tiffany's situation will be more dangerous.