Judge Blocks Tapestry's $8.5B Capri Acquisition in FTC Win; Capri Shares Sink 54%

Oct 24, 2024, 08:35 PM

A US federal judge has blocked Tapestry Inc.'s proposed $8.5 billion acquisition of Capri Holdings Ltd., siding with the Federal Trade Commission (FTC) over competition concerns in the accessible luxury handbag market. The court granted the FTC's preliminary injunction, finding that 'accessible-luxury handbags are distinct from mass market and true luxury.' The merger would have combined Tapestry, owner of Coach and Kate Spade, with Capri Holdings, parent company of Michael Kors, Versace, and Jimmy Choo. Following the decision, Capri's shares plunged 54% in after-hours trading, while Tapestry's shares rose 14%. Capri Holdings has filed a notice of appeal in response to the ruling.