FTC Blocks $8.5 Billion Deal Uniting Coach, Michael Kors

[SouthBayDem]

Source: Wall Street Journal

The Federal Trade Commission on Monday sued to block the merger of two premium handbag makers, saying the merger would give the combined firm too much power in the market for accessible luxury satchels.

In blocking Tapestry’s $8.5 billion acquisition of rival Capri Holdings, the FTC is also taking aim at their combined power as an employer. It said the deal could negatively affect employees’ wages and workplace benefits. Post acquisition, the combined company would employ roughly 33,000 employees worldwide, the agency said.

Tapestry and Capri said in a statement that they intend to defend the case in court to complete the deal.

The agency has been taking a more aggressive stance on antitrust enforcement. It recently sued to block Kroger’s $25 billion acquisition of Albertsons, a bid to upend the nation’s biggest supermarket deal. And it sued Amazon, alleging the online retailer uses anticompetitive practices to maintain its power.

Read more: https://www.wsj.com/business/retail/ftc-sues-to-block-8-5-billion-deal-to-combine-makers-of-coach-and-michael-kors-b79732f6?st=tic3cgzrhxgoohj&reflink=desktopwebshare_permalink

[PlutosHeart]

1. They should block it if not only

for putting the words Coach and Michal Kors together in one sentence. Ugh. Seriously? Which design team thought that would be a winner? Not me.

[cstanleytech]

2. OMG what will people do if designer handbags go up in price!!!! Oh, wait they might actually buy something else.

[Old Crank]

3. I thought so also

But the possible negativeeffect on workers might be the biggest driver here.

[cactusfractal]

4. Gawd forbid

Because if there's one thing the United States government should be focused on, it's ensuring a level playing field in the luxury satchel market. So many of society's ills can be traced back to price fixing schemes by luxury satchel manufacturers, and I for one I'm happy that the Federal Trade Commission is paying such close attention. I know that here, unlike in the more barbaric parts of the world, luxury satchels will remain accessible and fairly priced.