Luxury powerhouses Tapestry and Capri Holdings have officially abandoned their plans to merge, just weeks after a New York judge blocked the $8.5 billion deal over antitrust concerns.
Why the Merger Fell Apart
The companies mutually agreed to terminate the merger agreement, citing the unlikely prospect of obtaining necessary U.S. regulatory approvals by the deadline of February 10, 2025.
The Federal Trade Commission had sued to block the deal, arguing it would reduce competition in the “affordable luxury” market. U.S. District Judge Jennifer L. Rochon upheld this position in her October 24 ruling, stating that the merger would harm consumers by combining two direct competitors.
What Was at Stake
The proposed merger would have brought together Tapestry—home to Coach, Kate Spade, and Stuart Weitzman—and Capri Holdings, the parent company of Versace, Jimmy Choo, and Michael Kors. The deal was intended to create a dominant player in the affordable luxury market.
A Change in Direction
While the companies initially planned to appeal the judge’s ruling, their decision to part ways highlights the growing regulatory scrutiny surrounding major mergers in the luxury sector.