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Market
Tapestry's next move if Capri acquisition is blocked
5
Resolution / Starting Odds
Seeks another acquisition • 25%
Focuses on internal growth • 25%
Divests some assets • 25%
No change in strategy • 25%
Public statements from Tapestry or major news outlets
Story
FTC Sues to Block Tapestry's $8.5 Billion Capri Deal, Citing Competition Concerns
Apr 22, 2024, 09:07 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., which owns luxury brands like Michael Kors and Jimmy Choo. Filed on Monday, the lawsuit by the FTC argues that the merger between Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman, and Capri would significantly reduce competition in the luxury goods market, particularly in the 'affordable luxury' sector. This move by the FTC underscores concerns about maintaining competitive market conditions in the luxury fashion industry.
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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%
Pursue Other Acquisitions • 25%
Expand Independently • 25%
Restructure Existing Operations • 25%
Seek a Buyout • 25%
FTC blocks the merger • 33%
Merger proceeds with conditions • 34%
Merger proceeds without conditions • 33%
Merger Blocked Permanently • 33%
Merger Allowed with Conditions • 33%
Merger Allowed without Conditions • 33%
Leadership change in Tapestry • 25%
Leadership change in Capri • 25%
Leadership changes in both companies • 25%
No leadership changes in either company • 25%
Market Share Increase for Combined Entity • 25%
Market Share Decrease for Combined Entity • 25%
No Significant Change in Market Share • 25%
Other Competitors Gain Market Share • 25%
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%
FTC wins • 33%
Merger proceeds with conditions • 33%
Merger proceeds without conditions • 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%