An opportune letter sent by French foreign affairs minister Jean-Yves Le Drian to LVMH luxury goods group boss Bernard Arnault gave the latter a justification for pulling out of a costly acquisition of US jewellers Tiffany that was agreed before the economic meltdown from the Covid-19 pandemic. According to LVMH, Le Drian, citing a looming tariffs dispute with the US, asked for the 16.6 billion-dollar deal to be halted. Curiously, the letter has never been made public. As Martine Orange reports, it is now at the heart of a legal battle between Tiffany and LVMH to be played out at a trial in the US in January, and threatens to become a major embarrassment for the French government.
France's foreign minister has written an extraordinary letter that provides 'cover' for the French luxury goods group LVMH to pull out of an expensive deal to buy famous American jewellery firm Tiffany it no longer wanted to complete. That letter came after LVMH chief executive Bernard Arnault reportedly asked foreign minister Jean-Yves Le Drian for help. The affair is now likely to lead to a long and bitter legal battle, one that could even end up with the French state facing claims for compensation from disgruntled shareholders. Mediapart's Martine Orange argues in this op-ed article that no French government has ever gone out on such a limb to support a private company.
LVMH boss Bernard Arnault and Emmanuel Macron in June 2017. © Martin BUREAU / AFP