The companies Capri and Tapestry suspended their merger a quarter after the Federal Trade Commission managed to block the huge deal.
Capri's leader stated that the court's opposition to the FTC had become "a distraction" for the brands it manages, and thus it was decided to refuse the merger.
The FTC believed that the planned merger between Capri, owner of Versace and Michael Kors, and Tapestry, whose portfolio includes Coach and Kate Spade, threatened competition. The parties agreed to halt the process and proceed to permission for a deal.
"We will continue to focus on our brands and fully support their development as planned," said the head of Capri.
