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federal antitrust regulator Coach is planning to file a lawsuit to block owner Michael Kors’ $8.5 billion bid to buy Capri by Tapestry, Coach’s parent company, according to a report. new york times dealbook.
The Federal Trade Commission (FTC) is scheduled to hold a meeting next week to discuss the matter, which could result in commissioners voting on filing a lawsuit, but the report suggests the agency may decide not to file a lawsuit. It is pointed out that there is a possibility that the
of Merger proposal Top luxury brands such as Kate Spade and Stuart Weitzman of Tapestry, Jimmy Choo of Capri and Versace will be gathered there. Both companies received approval from European Union and Japanese regulators on Monday.
If the merger goes ahead, the U.S. fashion powerhouse would be more competitive with big European rivals like Louis Vuitton parent LVMH and Gucci owner Kering as the industry grapples with a slowdown in spending on luxury fashion. will be born.
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Capri Holdings is the parent company of Versace and Michael Kors. (Scott Olson/Getty Images/Getty Images)
The FTC asked both companies for more information about the merger in November, months after the deal was first proposed in August.
The newspaper reports that regulators are concerned that mergers could undermine price competition between brands, which could result in consumers paying higher prices for branded products. He pointed out that there is a possibility.
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The proposed merger between Capri and Tapestry could face antitrust claims from the FTC. (Scott Olson/Getty Images/Getty Images)
Tapestry CEO Joanne Crevoiserat said the deal is expected to close in 2024. told Bloomberg “Given the circumstances, we know it will take some time to resolve the issues,” he said in an interview Monday, adding that he didn’t think the company needed to sell any part of the brand to ensure the deal went ahead. He added that Through.
Capri stock fell 2.72% and Tapestry stock fell 0.91% in Wednesday trading.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| TPR | Tapestry Co., Ltd. | 40.49 | -0.38 | -0.93% |
| CPRI | Capri Holdings Co., Ltd. | 37.86 | -1.06 | -2.72% |
If the FTC moves to block the merger, it would be the agency’s latest effort during this period. Biden administration This is to prevent mergers and acquisitions that are considered anti-competitive.
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Tapestry is the parent company of the Coach, Kate Spade, and Stuart Weitzman brands. (Reuters/Andrew Kelly/Reuters Photo)
Pending mergers between grocery store chains albertsons and kroger is currently facing legal challenges from the administration.
Merger proposal between low-cost airlines spirit and jet blue It was halted after a federal judge sided with the FTC in a lawsuit challenging the partnership.
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The FTC’s effort to block Microsoft’s acquisition of Activision Blizzard was rejected by a federal court, and the $75 billion deal was completed in October 2023.
President Biden is signaled his disapproval Nippon Steel’s more than $14 billion bid to acquire U.S. Steel is currently under antitrust investigation, although the administration has not yet filed a lawsuit to block it.
Reuters contributed to this report.
