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Market
Will Tapestry and Capri Holdings proceed with the merger despite FTC's opposition by December 31, 2024?
2
Resolution / Starting Odds
Yes • 50%
No • 50%
Official company announcement or court ruling
Story
FTC Seeks to Block Tapestry's $8.5 Billion Merger with Capri Holdings as Trial Begins
Sep 9, 2024, 12:59 PM
The U.S. Federal Trade Commission (FTC) will urge a federal judge in New York to block Tapestry Inc.'s $8.5 billion merger with rival handbag maker Capri Holdings. The trial, which begins on September 9, will argue that the merger would eliminate fierce competition in the market for 'accessible luxury' handbags. Tapestry, the owner of Coach and Kate Spade, and Capri, the parent company of Michael Kors, are key players in this market. Analysts at TD Cowen estimate the U.S. market for accessible luxury handbags at $10-$15 billion, with Coach holding an 11% market share and Michael Kors holding 9%. The FTC's action is part of President Joe Biden's broader antitrust enforcement efforts.
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Similar markets
Yes • 50%
No • 50%
FTC wins • 25%
Tapestry wins • 25%
Settlement reached • 25%
Case dismissed • 25%
Yes • 50%
No • 50%
Acquisition approved • 25%
Acquisition blocked permanently • 25%
Acquisition modified and approved • 25%
Acquisition withdrawn • 25%
Focus on organic growth • 25%
Seek new merger/acquisition • 25%
Sell off a major brand • 25%
Other strategic move • 25%
Appeal successful, acquisition proceeds • 25%
Appeal unsuccessful, acquisition remains blocked • 25%
Settlement reached, acquisition terms modified • 25%
Appeal withdrawn or abandoned • 25%
Tapestry market cap increases significantly • 25%
Capri Holdings market cap recovers significantly • 25%
Both companies' market caps decline • 25%
Both companies' market caps remain stable • 25%
Sell Stuart Weitzman • 25%
Acquire a new brand • 25%
Merge with another company • 25%
No major action • 25%