FTC sues to block luxury fashion merger of Tapestry and Capri Holdings

A Michael Kors show in Manhattan earlier this year. A proposed merger would combine the brand with such U.S. luxury brands as Coach and Kate Spade. to block the $8.5 billion merger of luxury fashion conglomerates Tapestry and Capri Holdings, a union that regulators say would lead to higher prices for U.S. consumers.

“We have full confidence in the merits and pro-competitive nature of this transaction,” the statement said. “It will bring significant benefits to the combined company’s customers, employees, partners, and shareholders in the U.S. and around the world.”Tapestry to broaden its global reach and usher the company into a higher-end segment of the fashion industry.

“There’s a general concern of merged companies being able to raise prices,” Lada said. If the answer is yes, then the FTC has to consider if consumers will have a “reasonable substitute” if they aren’t able or willing to pay the higher price.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

FTC sues to block Coach parent Tapestry's acquisition of Capri HoldingsThe U.S. Federal Trade Commission on Monday sued to block the $8.5 billion acquisition of Capri Holdings by Coach and Kate Spade’s parent company,…
Source: NBCDFW - 🏆 288. / 63 Read more »

Federal Trade Commission sues to block Tapestry's $8.5B acquisition of CapriThe Federal Trade Commission sued to block Tapestry, Inc.’s $8.5 billion acquisition of Capri Holdings Ltd., saying that the deal would eliminate direct head-to-head competition between the fashion companies’ brands like Coach and Michael Kors in the so-called affordable luxury handbag arena.
Source: AP - 🏆 728. / 51 Read more »

Tapestry merger with Versace owner Capri gets EU, Japan approvalTapestry merger with Versace owner Capri gets EU, Japan approval
Source: Investingcom - 🏆 450. / 53 Read more »