Louis Vuitton Moët Hennessy (LVMH) has backed out of its proposed €14.7 billion acquisition of Tiffany & Co, due to concerns around the Coronavirus.

A statement explained that the luxury group's board of directors met to discuss the proposed deal and potential impacts that the pandemic could have on both businesses.

“Considering the recent market rumours, LVMH confirms, on this occasion, that it is not considering buying Tiffany shares on the market,” read the statement.

There was speculation board members were concerned about the jewellery brand and retailer’s ability to cover its debt covenants at the end of the transaction, which had been expected to conclude mid-year.

The takeover was initially announced back in November, involving the French luxury group of brands paying $135 per share in cash. It was subsequently approved “overwhelmingly” by the jeweller’s shareholders in February.

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