NEW YORK (NEWSnet/AP) — The Federal Trade Commission sued to block Tapestry, Inc.’s $8.5 billion acquisition of Capri Holdings Ltd.

Regulators said the deal, announced in August 2023, would eliminate direct head-to-head competition between the fashion companies’ brands like Coach and Michael Kors.

Tapestry’s and Capri’s portfolio of brands cover a wide array of items from clothing to eyewear to shoes. Tapestry has been on an acquisition binge for the past several years, and already owns Kate Spade New York, Stuart Weitzman and Coach. Capri owns the Versace, Michael Kors and Jimmy Choo brands.

The two companies were trying to link up to become more competitive with European rival brands like Louis Vuitton, Dior, Fendi, Givenchy, as well as Gucci, Balenciaga and Saint Laurent.

Tapestry said that “there is no question that this is a pro-competitive, pro-consumer deal and that the FTC fundamentally misunderstands both the marketplace and the way in which consumers shop. ”

The FTC contends that the merger would raise prices and hurt the wages of the companies' workers. 

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