TPR - FTC Files Lawsuit To Block $8.5B Merger Of Coach And Versace Handbag Makers | Benzinga
The U.S. Federal Trade Commission (FTC) has launched a lawsuit to halt the $8.5 billion acquisition of Capri Holdings Ltd. (NYSE:CPRI) by Tapestry Inc. (NYSE:TPR).
What Happened: The FTC’s lawsuit, filed on Monday, contends that the proposed merger would eliminate direct competition between the two luxury handbag manufacturers, potentially impacting wages and employee benefits, Reuters reported.
The commission asserts that the deal could deprive consumers of the benefits of competition between Tapestry and Capri, including aspects such as price, discounts, promotions, innovation, design, marketing, and advertising.
This unusual antitrust challenge against a high-end fashion merger could potentially set a new standard for luxury deal regulation, according to several antitrust lawyers.
In defense, Tapestry CEO Joanne Crevoiserat argued that the FTC fundamentally misunderstands the marketplace and the impact of the deal on employees and industry workers.
Despite ...