Apr 17, 2024 - Business

FTC said to consider blocking Tapestry's takeover of Capri Holdings

Illustration of two intertwined gavels.

Illustration: Gabriella Turrisi/Axios

The FTC is reportedly considering a move to block Tapestry's $8.5 billion acquisition of Capri Holdings, according to the New York Times.

Why it matters: The merger aims to bring together a slew of top luxury brands, including Kate Spade, Coach, Versace, and Michael Kors.

Zooming in: The commission is expected to meet next week to discuss the case, potentially moving forward to a formal vote.

  • Meanwhile, while Capri's shares have plunged more than 20% this year since the takeover's announcement, Tapestry's have risen 6%.

Go deeper, per the NYT: "Monopoly cases in the fashion industry are rare, because there is no shortage of new labels looking to undercut legacy brands. 'It is the paradigmatic part of the economy where there is ample competition,' said Howard Hogan, the chair of the fashion, retail and consumer practice at the law firm Gibson Dunn."

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