Overview

• Tapestry Inc.'s proposed acquisition of Capri Holdings, valued at $8.5 billion, has secured regulatory approvals in Europe and Japan but awaits a critical nod from the U.S. FTC.
• Market skepticism persists as Capri's stock trades well below Tapestry's offer price, reflecting concerns over antitrust approval in the U.S.
• Tapestry CEO Joanne Crevoiserat remains confident in the deal's completion within 2024, emphasizing its consumer benefits and competitive market dynamics.
• The merger would position the combined entity as a major player in the luxury market, ranking fourth globally and second in the Americas.
• Investors and the merger arbitrage community are closely monitoring the FTC's ongoing review, which has requested additional information.