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Market
Tapestry or Capri Holdings Seek Alternative Partners by End of 2024
5
Resolution / Starting Odds
Yes • 50%
No • 50%
Company press releases, SEC filings, or major business news outlets
Story
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.
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Similar markets
Expansion of product lines • 25%
Restructuring of existing brands • 25%
Acquisitions of other companies • 25%
Sale of existing brands • 25%
Leadership change in Tapestry • 25%
Leadership change in Capri • 25%
Leadership changes in both companies • 25%
No leadership changes in either company • 25%
Resolved by end of 2024 • 33%
Resolved by mid-2025 • 33%
Not resolved by mid-2025 • 34%
Significant drop in Capri Holdings stock • 25%
Significant drop in Tapestry Inc. stock • 25%
Increase in both stocks • 25%
Minimal impact on both stocks • 25%
Seeks another acquisition • 25%
Focuses on internal growth • 25%
Divests some assets • 25%
No change in strategy • 25%
FTC wins • 33%
Merger proceeds with conditions • 33%
Merger proceeds without conditions • 34%
Lawsuit successful • 50%
Lawsuit unsuccessful • 50%
Stocks of both companies rise • 25%
Stocks of both companies fall • 25%
Mixed response (one rises, one falls) • 25%
No significant change in stock prices • 25%