The parent company of Coach and Kate Spade, Tapestry, is being sued by the US Federal Trade Commission to halt its $8.5 billion USD acquisition of Capri due to antitrust issues. The FTC said that the transaction will remove its rivals in the market for high-end handbags.
Note that Capri earns about $4 billion USD from its array of brands, which includes Versace, Michael Kors, and Jimmy Choo, while Tapestry takes in over $12 billion USD yearly from names like Stuart Weitzman, Coach, and Kate Spade.
The proposed merger "threatens to deprive millions of American consumers of the benefits of Tapestry and Capri's head-to-head competition, which includes competition on price, discounts and promotions, innovation, design, marketing, and advertising," according to a statement released by the FTC. /BGNES