Coach parent Tapestry said it was calling off a merger agreement with Capri, amid regulatory obstacles • AFP Photo credit: SETH HERALD
“Capri and Tapestry mutually agreed that terminating the merger agreement was in the best interests of both companies,” Capri said in a statement.
Fashion group Tapestry (NYSE: TPR) said Thursday that it was dropping its $8.5 billion bid for Capri (NYSE: CPRI), the owner of luxury brands including Michael Kors and Versace, following a successful legal challenge by US regulators.
The deal was seen as an attempt to form a new global fashion giant to compete with European powerhouses.
But the Federal Trade Commission (FTC) had sued to block the merger.
In blocking the deal for Tapestry — which owns Coach — to buy Capri last month, a US court found that “the merging parties are close competitors, such that the merger would result in the loss of head-to-head competition.”
To read the full story on US AFP News, please visit https://us.afpnews.com/article/?coach-owner-tapestry-calls-off-capri-bid-on-regulatory-blocks,36MH6ML#
