Yahoo Finance UPDATE 1-Tapestry merger with Versace owner Capri gets EU, Japan approval
(Adds comments from Tapestry CEO)
By Juveria Tabassum and Abigail Summerville
April 15 (Reuters) - Coach parent Tapestry's $8.5 billion deal to buy Michael Kors owner Capri Holdings has received regulatory clearance from the European Union and Japan, the companies said on Monday.
The merger, which would bring top luxury labels such as Tapestry's Kate Spade, Stuart Weitzman and Capri's Jimmy Choo and Versace under one roof, is still awaiting clearance from U.S. regulators.
The U.S. Federal Trade Commission (FTC) sought additional information on the planned merger from the two companies in November, months after the deal was announced.
Tapestry CEO Joanne Crevoiserat told Reuters in an interview that the companies are cooperating with the FTC's requests and the deal is still on track to close in the 2024 calendar year.
"(The EU approval) is another important milestone and a step towards closing the deal. It's a recognition of what we see - this is a transaction that is going to be great for consumers in a highly competitive market," Crevoiserat said.
A merger between the two companies would help Tapestry compete better with Paris-listed LVMH in the European luxury market, even as demand for expensive handbags and accessories remains choppy in the United States.
The deal is expected to close this year and add to Tapestry's adjusted profits immediately, the companies said last year. (Reporting by Juveria Tabassum and Abigail Summerville; Editing by Devika Syamnath and Ros Russell)
