US FTC Preparing to Sue to Block $8.5 Bln Takeover of Capri by Tapestry, NYT Dealbook Reports
The US Federal Trade Commission (FTC) is preparing to sue to block Coach parent Tapestry’s $8.5 billion deal to buy Michael Kors owner Capri Holdings, NYT Dealbook reported on Wednesday, citing people familiar with the matter.
The deal, which would bring together top luxury labels such as Tapestry’s Kate Spade, Stuart Weitzman and Capri’s Jimmy Choo and Versace, received regulatory clearance from the European Union and Japan on Monday.
The FTC’s five commissioners are expected to meet this week to discuss the case, a move that could precede a formal vote on whether to file a lawsuit, according to the report.
The merger proposed in August last year aimed to create a US fashion powerhouse amid a gradual slowdown in demand for luxury goods in the US as sticky inflation forces customers to cut back on discretionary spending.