Federal Court Blocks Tapestry-Capri Merger Amid FTC Concerns
A federal court ruling has blocked the $8.5 billion merger between Tapestry, owner of Coach, and Capri Holdings, parent of Michael Kors. Judge Jennifer Rochon’s decision, prompted by the FTC’s concerns over consumer impact, has led to a 10% rise in Tapestry’s stock while Capri’s shares plummeted by 50%. As Tapestry plans to appeal, the ruling raises critical questions about competition and market dynamics in the luxury fashion industry.
FTC Blocks $8.5 Billion Merger Between Coach Parent Company Tapestry and Michael Kors Owner Capri
The US Federal Trade Commission (FTC) has blocked the $8.5 billion merger between Coach parent company Tapestry and Michael Kors owner Capri, citing concerns about creating a monopoly. The FTC’s move aims to prevent increased prices and harm to consumers by scrutinizing large deals that could eliminate competition. Capri Holdings and Tapestry have expressed disagreement with the FTC’s decision, emphasizing the pro-competitive nature of the merger. Stay informed with our free daily newsletter for the latest updates.