Media reports say LVMH has now definitively backed out of the US$16 billion deal that would merge Tiffany with the French luxury conglomerate. In a response, Tiffany has allegedly filed a lawsuit against LVMH, denouncing LVMH's claim that Tiffany had breached its obligations as stipulated in the merger agreement.
A deal that was announced between LVMH and Tiffany & C° earlier this year, in which the France-based luxury conglomerate led by Bernard Arnault would acquire the iconic jeweler for $135 per share, is potentially falling through, as LVMH is reconsidering its engagement amid the turmoil of the COVID-19 pandemic and unrest in the USA. According to Retail Dive, LVMH’s press release suggests that it is looking to lower the offer, and some sources say that move is based
According to several reports, LVMH's raised offer of 16.7 billion US dollar - from the 14.5 billion offered and declined earlier - might be convincing enough to persuade TIffany's and the deal could be concluded fast, insiders say. If so, Tiffany's would be joining LVMH's portfolio, which includes Bvlgari, Louis Vuitton and Dior and put the luxury conglomerate in a more interesting position to compete with rivals, such as the Swiss-based Richemont.
Richline Group, a subsidiary of Berkshire Hathaway and one the U.S.’s foremost fine jewelry manufacturers and marketers has acquired The Aaron Group, a leading jewelry manufacturer and marketer.
Firestone Diamonds plc said it has agreed to extend the date by when all conditions for the disposal of the company's Botswana operations to Tango must be satisfied at the request of Tango Mining Limited. This extension is to enable Tango Mining to finalize its funding. As announced on July 9, the company entered into a conditional sale agreement with Tango Mining for the disposal, for a total of $8.0 million and, as announced previously certain terms of the conditional sale agreement were amended by the amendment letters.
South Africa’s richest man, Christo Wiese, sees opportunities to consolidate diamond operations in the region after buying a stake in diamond miner Trans Hex Group Ltd. Wiese, 74, told Bloomberg that he has always been “fascinated’’ by diamonds and saw good value in them. “There are opportunities for consolidating diamond operations in southern Africa.
Almost 500 North American jewelry businesses discontinued operations in the second quarter of this year, according to the Jewelers Board of Trade (JBT). The figure is a 66 percent increase on the number JBT recorded in the second quarter of 2015, and provides a strong signal that the industry’s consolidation is continuing. A total of 475 number businesses discontinued operations in the United States and Canada together, with 460 of them being in the United States.
Diamond industry analyst Paul Zimnisky believes it is very unlikely that De Beers Canada will be able to find a buyer for its Snap Lake mine before the company floods it later this year. He said the main reasons were groundwater problems, lower diamond prices and a reduced number of diamond producers. "I don't see somebody buying it and turning it back on and producing at current prices," he told Canada's CBCNews. According to his data, rough diamond prices are only up about five percent since De Beers ended production at the mine last December.
Petra Diamonds today announced that Petra and Ekapa Mining have entered into a joint venture agreement, which combines the respective operations, owned and operated by the joint venture partners in the Kimberley area, into an unincorporated joint venture named the Kimberley Ekapa Mining Joint Venture. The respective operations comprise: Petra’s Kimberley Underground mines; Ekapa Mining's tailings operations; and Kimberley Mines tailings operations, owned 50.1% by Ekapa Mining and 49.9% Petra.
Berkshire Hathaway’s Richline Group, a major supplier of jewelry to retailers in the United States, has bought online jewelry firm Gemvara Inc. which has struggled to find a strong business model despite the investment of $60 million in the firm since it was established in 2006. Richline, which did not reveal the acquisition price, plans to hire more workers at Gemvara as it attempts to grow its footprint in the online sector, spokesman Mark Hanna told The Boston Globe.
De Beers has announced the completion of the previously announced sale of the historic Kimberley mines in South Africa. The sale was of all assets related to the mine, including the tailings resources. The mines were acquired by Petra Diamonds Limited in a consortium with Ekapa Mining (Pty) Ltd, an established Kimberley-based diamond tailings producer, which bought the Kimberley mines from De Beers Consolidated Mines Proprietary Limited.
Private equity fund Blackstone has bought Diamonds Direct which opened its first operation in the United States in 1995, and now has seven locations in America selling diamonds directly to the end customer from a manufacturing facility in Israel. The acquisition follows Blackstone's purchase of a stake in mining firm Stornoway Diamonds and a minority ownership interest in the Renard diamond project.