Popular luxury brand Louis Vuitton announced that it would not acquire Tiffany shares on the open market although this would potentially enable it to pursue its plans to buy the famous US jeweler at a lower price than last year. The company also purchased 400 million face masks to donate to Italy.
French luxury goods group Louis Vuitton was considering the purchase of shares in Tiffany on the market after it entered into a deal to buy the company for 16.2 billion USD or 135 USD per share.
Stock markets have collapsed due to the pandemic that pushed several governments in Europe to order shutdowns of their stores and factories worldwide. In an official statement, Louis Vuitton announced that it would not acquire said Tiffany shares. It was also revealed that such a business strategy would be viable yet unusual with Tiffany's blessing.
Last week, Tiffany revealed its forecasts on the market for the coming months. It was then shown that it is expecting financial downfalls as it closed several outlets including its iconic flagship at Fifth Avenue in New York. Tiffany shares closed at 125 USD per share last Friday.
In other news, Business Insider reported that LVMH has ordered 40 million face masks from China to donate to France.
The first 10 million masks would be distributed in the country to those in need early next week. The company has also dedicated its efforts in producing alcohol-based sanitizers in its factories and donate the products to French health authorities without pay.
In a statement last Saturday, the luxury brand claimed that the initial batch would be given to the French health service for distribution while the rest would be put in custody of the French government. The same would also be funded by the French government and would be delivered in the coming weeks.
The luxury group LVMH is the owner of brands such as Christian Dior, Louis Vuitton, and controlled by French billionaire Bernard Arnault. At present, the brand has already been producing and delivering hand sanitizers to French hospitals without costs.
Arnault announced that production has started for the sanitizers and would exert continued efforts to ensure that the masks ordered would be delivered during an extremely tense period. He also arranged for the company to finance a full week's worth of deliveries that would cost five million euros or 5.4 million USD.
The report further discussed that countries around the world have been struggling to deal with the biggest health crisis since 1918. It was discussed that there have been shortages of medical supplies and protective gear globally. French health professionals have also criticized the shortages as the country entered an unprecedented lockdown last Tuesday.
