(Reuters) – Trainer Parent Tapestry’s (NYSE:) $8.5 billion deal to buy Michael Kors owner Capri Holdings (NYSE:) has received regulatory approval from the European Union and Japan, the companies said Monday.
The merger, which will bring together leading luxury brands such as Tapestry’s Kate Spade, Stuart Weitzman and Jimmy Choo and Versace with Capri under one roof, is still awaiting approval from the United States.
The US Federal Trade Commission (FTC) requested additional information about the planned merger from the two companies in November, several months after the deal was announced.
Merging the two companies will help Tapestry better compete with Paris-listed LVMH in the European luxury goods market, even as demand for high-end handbags and accessories remains volatile in the United States.
The deal is expected to close in 2024 and will be immediately accretive to Tapestry’s adjusted earnings, the companies said last year.