The U.S. Federal Trade Commission (FTC) has sent requests to Tapestry and Michael Kors owner Capri Holdings for more information on their planned $8.5 billion deal, the companies said.
Tapestry agreed to buy Capri in August, as the luxury brands looked to consolidate top labels such as Tapestry’s Kate Spade, Stuart Weitzman and Capri’s Jimmy Choo and Versace under one roof to compete with larger rivals such as Paris-listed LVMH in the European luxury market.
The companies said on Monday they expect to respond “promptly” to the FTC’s request and aim to close the deal as planned, in 2024.
Capri’s shares, which had jumped 55% on Aug. 10 after the deal was announced, were down 2.5% in extended trade.
In August, Tapestry warned of weak profit and sales in fiscal 2024 as increased cost of living and still-high inflation has pressured American budgets, denting demand for luxury brands.
Source: Reuters.com