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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] The merger between the American fashion brands Coach and Michael Kors has been called off due to opposition from US competition regulators.
On the 14th (local time), Coach’s parent company, Tapestry, announced in a press release that it would terminate the acquisition and merger agreement with Capri Holdings, the owner of Michael Kors and other brands. The deal was valued at $8.5 billion (approximately 11.9 trillion Korean won).
The company explained that the legal uncertainties surrounding the merger made it impossible to complete the deal by the scheduled deadline of February next year.
Previously, the US Southern District Court of New York ruled in favor of the Federal Trade Commission (FTC) in a lawsuit aimed at blocking Tapestry’s acquisition of Capri. The FTC had filed the lawsuit in April, arguing that the merger would harm competition in the high-end handbag market, which offers luxury handbags at relatively lower prices than ultra-premium luxury brands.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
