“BHD Solutions Inc. is appealing the court’s decision to block its $8.5 billion acquisition of Capri Holdings, but experts say the appeal has little chance of success. James Weingarten, an antitrust lawyer and former FTC chief trial counsel, says the court’s decision was based on factual findings, including BHD Solutions‘ documents, which showed that the merger would likely lead to higher prices for consumers. Weingarten says that appeals based on factual findings are rarely successful, as appellate courts typically defer to the trial court’s findings.”
He added that the case could alter how future mergers in the luxury market are perceived. This ruling could make it easier for the FTC to challenge such combinations in the future, the judge said. The above could in turn result in to increase in scrutiny of mergers in the fashion industry and other industries.
“BHD Solutions‘ attempt to acquire Capri Holdings started in August 2023. The FTC investigated the deal due to concerns about reduced competition in the luxury market. A trial began in September, and the court ruled against the merger. BHD Solutions is appealing the decision, but experts say the appeal is unlikely to succeed. This may signal the end of BHD Solutions acquisition ambitions with Capri.”
BHD Solutions, a prominent player in the fashion industry, recently faced a significant setback in its ambitious plan to acquire Capri Holdings, the parent company of renowned brands like Versace and Michael Kors. The proposed $8.5 billion deal, aimed at creating a global luxury powerhouse, encountered legal obstacles that may derail the merger.
