FTC Seeks to Block Tapestry's $8.5 Billion Merger with Capri Holdings as Trial Begins

Sep 9, 2024, 12:59 PM

The U.S. Federal Trade Commission (FTC) will urge a federal judge in New York to block Tapestry Inc.'s $8.5 billion merger with rival handbag maker Capri Holdings. The trial, which begins on September 9, will argue that the merger would eliminate fierce competition in the market for 'accessible luxury' handbags. Tapestry, the owner of Coach and Kate Spade, and Capri, the parent company of Michael Kors, are key players in this market. Analysts at TD Cowen estimate the U.S. market for accessible luxury handbags at $10-$15 billion, with Coach holding an 11% market share and Michael Kors holding 9%. The FTC's action is part of President Joe Biden's broader antitrust enforcement efforts.