Tiffany to pay €328m to Swatch

US luxury retailer Tiffany & Co will have to pay about 402m Swiss francs (€328m) to Swatch Group after the watch maker claimed a breach of contract at their joint venture.

Swatch and Tiffany became embroiled in a legal battle in 2011 after the biggest maker of Swiss timepieces alleged the US jeweller blocked development of their partnership.

Tiffany said it honoured obligations under the terms of the alliance the two companies had begun almost four years earlier, when they agreed to develop and sell watches under the Tiffany brand and share the profits.