Tapestry's $8.5 Billion Acquisition of Capri Holdings Faces U.S. Regulatory Hurdles

Despite receiving approval from European and Japanese regulators, Tapestry's deal to acquire Capri Holdings is still under scrutiny by the U.S. Federal Trade Commission.

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.