Tapestry and Capri Cancel $8.5 Billion Merger After FTC Block

The decision comes as regulatory challenges prove insurmountable, prompting both companies to focus on independent growth strategies.

The Federal Trade Commission's lawsuit blocked the merger, citing concerns over reduced competition in the accessible luxury handbag market.
A federal judge's ruling in October supported the FTC's stance, leading to the termination of the merger agreement by both companies.
Tapestry, owner of Coach and Kate Spade, plans to redirect its resources towards a $2 billion stock buyback program.
Capri Holdings, which owns Versace and Michael Kors, faces challenges as it seeks to revitalize its brands independently.
Analysts view Tapestry's decision as a prudent move, avoiding potential overpayment and resource strain, while Capri's path forward appears more uncertain.