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US Federal Trade Commission Tapestry’s $8.5 billion acquisition of Capri

26 Apr 2024

The acquisition will unite six luxury brands, including Tapestry’s Kate Spade, Coach, and Stuart Weitzman, with Capri’s Versace, Jimmy Choo, and Michael Kors, under one entity.

The Federal Trade Commission (FTC) moved to prevent Tapestry, Inc.’s $8.5 billion acquisition of Capri Holdings Limited. Tapestry wants to strengthen its foothold in the fashion industry by acquiring Capri. 

Kate Spade and Coach offer affordable items called accessible luxury accessories. As per the FTC, the combined entity will have no reason to be price competitive, thus forcing Americans to pay more for these items. This will dissolve the competition for affordable handbags, while wage workers may lose their benefits and favourable working conditions.

The new company will compete directly with European luxury brands like Burberry and Louis Vuitton. It may record over $12 billion in annual revenue and a presence in over 75 nations. Tapestry announced the deal in August 2024 and received regulatory approval from Europe and Japan. It maintains that customers get ample options in every segment and the deal will not impact their buying power.

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