Deal Between Coach, Michael Kors Owners Clears Regulatory Hurdles in EU and Japan

Tapestry, the parent company of Coach, has received regulatory clearance from the European Union and Japan for its $8.5 billion acquisition of Capri Holdings, the owner of Michael Kors. T

According to Reuters, the merger is poised to consolidate various prestigious brands under one conglomerate, including Tapestry’s Kate Spade and Stuart Weitzman and Capri’s Jimmy Choo and Versace labels.

While the merger has crossed significant hurdles in the EU and Japan, it awaits the green light from U.S. regulators. The U.S. Federal Trade Commission (FTC) has shown keen interest in the deal, requesting additional information from both companies in November, a few months after the merger was announced. Despite this, Tapestry CEO Joanne Crevoiserat remains optimistic, stating in an interview with Reuters that the transaction is on track to close in the 2024 calendar year and emphasized the merger’s benefits for consumers in a competitive market.

The EU’s approval of the deal is seen as a crucial step towards the completion of the merger, with Crevoiserat highlighting it as a significant milestone. The merger is seen as strategically important for Tapestry as it aims to bolster its position against rivals like LVMH in the European luxury market.

Source: Reuters