From CNBC: 2024-10-24 17:45:29

A federal judge blocked Tapestry’s acquisition of Capri following a trial in New York last month, putting six luxury fashion brands under one company. Tapestry’s stock surged 10%, while Capri’s dropped 50%. Tapestry plans to appeal the order, disagreeing with the decision as pro-competitive and pro-consumer. Both companies face financial consequences based on the deal outcome. The reasoning behind the order remains unclear, pending a sealed opinion. The Federal Trade Commission sought to stop the $8.5 billion deal, fearing harm to consumers and employees. The decision is seen as a win for consumers seeking quality handbags at affordable prices. The FTC’s efforts to maintain competition have been a focus under Chair Lina Khan’s leadership, blocking various mergers across industries. Testimony during the trial showed conflicting views on the potential impact of the merger on prices and product quality in the highly competitive handbag market.



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