Merger Inaccessible for Accessible Luxury Brands – Merger Arbitrage Mondays

Capri Holdings Limited (CPRI): $21.26

Market Cap: $2.50 B

The term “Accessible Luxury” made the hopes of a merger between Capri and Tapestry inaccessible.

U.S. District Judge Jennifer Rochon blocked the acquisition of Capri by Tapestry (TPR) on Thursday, concluding the deal would harm competition in the “accessible luxury” handbag market—a significant win for the Federal Trade Commission (FTC).

This ruling grants the FTC additional time for its internal trial regarding the merger, a process that could extend several months and potentially jeopardize the merger altogether. FTC’s evidentiary hearing for the merger is scheduled to start on October 28.

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