Federal trade commission sues to block $8.5 billion merger of Coach and Michael Kors

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The agency said that the deal would eliminate direct head-to-head competition between the fashion companies’ brands like Coach and Michael Kors in the…

The agency also said the deal threatens to eliminate the incentive for the two companies to compete for employees and could depress employees’ wages and workplace benefitsThe 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.

the $24.6 billion merger between grocery giants Kroger and Albertson's, saying the lack of competition would lead to higher grocery prices and lower wages for workers. The supermarket chains said Monday in October 2022. The companies said it’s necessary so they can better compete with Walmart, Amazon and other big rivals.

Once completed, the new entity would be the fourth largest luxury company in the world, with a combined market share of around 5.1% of the luxury goods market, according to research firm GlobalData PLC. In the Americas, the company will become the second largest luxury player behind LVMH, with a combined share of 6% of the luxury goods market, GlobalData said.

 

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