Official announcements from Capri Holdings or major financial news outlets

Capri and Tapestry Terminate $8.5 Billion Merger; Tapestry Shares Up 7.5%, Capri Down 6%

Nov 14, 2024, 12:36 PM

Capri Holdings and Tapestry have mutually agreed to terminate their proposed $8.5 billion merger following a U.S. court ruling that blocked the deal due to antitrust concerns raised by the Federal Trade Commission (FTC). The decision comes amid significant market reactions, with Tapestry's shares rising approximately 7.5% and Capri's stock declining by around 6% following the announcement. Tapestry plans to repurchase $6.1 billion in bonds that were issued to finance the now-abandoned acquisition. Capri's CEO, John Idol, stated that the company will refocus on growth for its luxury brands, which include Versace and Jimmy Choo. The termination of the merger reflects ongoing regulatory scrutiny in the luxury goods market.