Seeking Alpha reports that, after some uncertainty, China’s regulators have approved Tapestry’s $8.5 billion purchase of Capri (https://lnkd.in/e9fyPRb7). It is not clear whether or how severe concerns may be been over the implications of the merger that will bring together Coach, Kate Spade, Stuart Weitzman, Versace, Jimmy Choo, and Michael Kors. Our understanding is that U.S. regulators are continuing the review the deal.
Glossy reported that Tapestry CEO Joanne C. Crevoiserat defended as necessary in the highly consolidated luxury market: “We are competing with very large global competitors,” Crevoiserat said. “So having more scale will help us, as an American company, compete.” (https://lnkd.in/eBtPJJPt)
Capri shares ($CPRI) were up over 150 basis points on opening this morning.