U.S. FTC sues to block $8.5-billion takeover of Capri by Tapestry

The U.S. Federal Trade Commission (FTC) said on Monday it was suing to block Coach parent Tapestry’s $8.5-billion deal to buy Michael Kors owner Capri CPRI-N.

Shares of Tapestry were down about 1 per cent in extended trading, while Capri was up 0.6 per cent.

“If allowed, the deal would eliminate direct head-to-head competition between Tapestry’s and Capri’s brands,” the FTC said in a statement.

Earlier in April, the companies had received regulatory clearance from the European Union and Japan for their deal, which would bring top luxury labels such as Kate Spade and Jimmy Choo under one roof.