FTC to Sue to Block Coach Owner Tapestry's $8.5 Billion Takeover of Michael Kors Owner Capri

Apr 17, 2024, 11:55 AM

The U.S. Federal Trade Commission (FTC) is preparing to file a lawsuit to block the proposed $8.5 billion acquisition of Michael Kors owner Capri Holdings by Coach owner Tapestry. This move comes despite the merger receiving approval from antitrust regulators in Japan and the European Union. The only remaining hurdle is approval from the United States. The FTC's concerns reportedly focus on the close competition between the two luxury handbag makers, as well as labor concerns. The New York Times has reported that the FTC is likely to sue to prevent the deal, which has led to a 2.4% decline in Capri's stock prices.