(Addition of context elements throughout the procedure, actions in paragraph 4)
The U.S. Federal Trade Commission (FTC) has sent requests to Tapestry TPR.N and Capri Holdings CPRI.N , owner of Michael Kors, for more information about their proposed $8.5 billion transaction, the companies said Monday.
Tapestry agreed to buy Capri in August, as luxury brands sought to bring high-profile brands such as Kate Spade and Stuart Weitzman for Tapestry and Jimmy Choo and Versace for Capri under one roof to compete with rivals most important such as LVMH
LVMH.PA, listed in Paris, on the European luxury market.
The companies said Monday they plan to respond “promptly” to the FTC’s request and aim to close the deal as planned, in 2024.
Shares of Capri, which jumped 55% on Aug. 10 after the deal was announced, were down 2.5% in extended trading.
In August, Tapestry warned of weak earnings and sales for fiscal 2024 as rising costs of living and continued high inflation strained U.S. budgets, reducing demand for brands luxury.