FTC Sues to Block $8.5 Billion Tapestry-Capri Merger, Citing Luxury Market Harm

Apr 22, 2024, 09:30 PM

The U.S. Federal Trade Commission (FTC) has initiated legal action to block Tapestry Inc.'s proposed $8.5 billion acquisition of Capri Holdings Ltd. The deal, which involves the merging of major fashion brands such as Coach, Kate Spade, Michael Kors, and Jimmy Choo, is alleged by the FTC to potentially harm competition within the luxury goods market, specifically in the 'affordable luxury' sector. Tapestry, which owns Coach and Kate Spade, aimed to acquire Capri Holdings, the parent company of Michael Kors and Jimmy Choo. The FTC's intervention highlights concerns over market concentration and the potential reduction in consumer choices.