Tapestry and Capri Holdings are no longer interested in joining together, the two conglomerates said this week, less than a month after a New York judge blocked their proposed merger on antitrust grounds.
Capri said in a statement that it and Tapestry “mutually agreed that terminating the merger agreement was in the best interests of both companies as the required closing condition of receiving necessary U.S. regulatory approvals was unlikely to be met by the merger agreement’s outside date of February 10, 2025.”
The companies had originally said they planned to appeal the judge’s ruling.
In August 2023, Tapestry—which owns the Coach, Kate Spade, and Stuart Weitzman brands—agreed to pay $8.5 billion to buy Capri Holdings, parent company of Versace, Jimmy Choo, and Michael Kors.
But the Federal Trade Commission sued to block the deal, saying it would reduce competition in the “affordable luxury” segment. U.S. District Judge Jennifer L. Rochon agreed, noting in her Oct. 24 ruling that the two companies were direct competitors, and their union could harm consumers.
(Photo: Getty Images)
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