Capri terminates Tapestry merger citing regulatory hurdles

Published On Nov 14, 2024, 11:45 AM

Capri Holdings and Tapestry have officially terminated their proposed $8.5 billion merger due to regulatory challenges, particularly concerns from the Federal Trade Commission (FTC) about potential anti-competitive effects in the luxury handbag and accessories market. A federal judge ruled against the merger, which led the companies to refocus on their individual strategies for growth. Capri's stock has significantly declined since the merger was initially blocked, while Tapestry’s stock has reacted positively following the termination and the announcement of a share buyback program.