Moonstone Compliance & Risk Management’s Post

Former Luxe Holdings CEO slapped with R7.5m fine, banned as director for share-trading breach. The JSE has fined the former chief executive of Luxe Holdings R7.5 million and barred her from serving as an officer or director of a JSE-listed company for five years for trading the company’s shares during its closed period. Click the link below and dive into the full article to get further details. Share your thoughts in the comments! https://buff.ly/3VcRBwn #censure #closedperiod #GoDutch #JSE #ListingsRequirements #LuxeHoldings #moonstoneupdate #moonstoneinfo #industrynews

Another one bites the dust: Capri (NYSE: CPRI) - a company that owns the brands Michael Kors, Jimmy Choo and Versace - and Tapestry (NYSE: TPR) called off their merger today, another victim of an overly restrictive regulatory apparatus. Investors, including me, lost money on this deal. The price action today indicates that investors see some optimism in Capri doing well on its own. It is hard to come up with a timeline for them to turn things around but I think it will take at least two to three years. A recession will move that timeline out further. The appointment of a new management team will hopefully move the timeline in a positive direction. We will do a deeper dive with a deal postmortem on InsideArbitrage in the coming days. This will be our third postmortem after covering iRobot (IRBT) and Spirit Airlines (SAVE) earlier this year.

This will be interesting to watch👇. From a M&A perspective, FTC Chair Lina Khan’s legacy is clear —> any deal hinting at market power is subject to challenge and no sector is immune. Despite this FTC challenge, Tapestry is hoping to close by end of 2024. That’s over 16 months from deal announcement with Capri Holdings Limited. Strategics and Corporate #CEOs (public and private) should take note relative to their M&A strategy, revenue/expense plays, and business forecasting. #MnA #Luxury #Retail #Fashion #FTC #antitrust #anticompetiton #AssetProtection #strategicdeals #CMO #Marketing #Versace #JimmyChoo #MichaelKors #Coach #KateSpade #PE #PrivateEquity

“Antitrust has come into fashion,” noted U.S. District Judge Rochon, who blocked the $8.5 billion Tapestry-Capri merger following the #FTC's motion to halt the deal over concerns about consumer pricing and market competition. This decision isn’t isolated; it reflects a broader trend impacting sectors like #healthcare and #media. In healthcare, halted mergers such as Cigna-Humana have sparked new scrutiny over the impacts of consolidation on costs, access, and regional competition. In media and entertainment, companies aiming to consolidate streaming and content to compete with tech giants now face similarly heightened regulatory barriers on monopolistic practices. As bipartisan debates and concerns continue over the FTC’s direction under Lina Khan, 2025 will challenge companies across industries to align growth strategies with evolving regulatory standards. How organizations navigate these stricter antitrust measures may define their growth trajectories and shape the competitive landscape for years to come, offering insights into balancing corporate expansion and regulatory accountability in today’s market. #Antitrust #MergersAndAcquisitions #Healthcare #Media #FTC #BusinessStrategy #CorporateGrowth

After rejecting multiple bids from Frasers, the luxury company is looking to streamline its internal structure and rethink product strategies. #Mulberry #turnaroundmanagement https://lnkd.in/gtFHnPSh

I followed the FTC's case against the Tapestry/Coach acquisition of Capri Holdings Limited/Michael Kors closely and believe a better 'Michael Kors' brand would help not hurt the handbag industry and consumers. I agree 100% with GlobalData's Neil Saunders: “The blocking of Tapestry’s acquisition of Capri is absurd. It does not reflect the realities of the market. It treats highly discretionary goods like they're some kind of essential commodity. And it shows a large degree of economic illiteracy.” Get my analysis here in latest Forbes.com post. #mergersandacquisitions #accessibleluxury #luxuryhandbagmarket

Antitrust is back in fashion...

The antitrust trial surrounding Tapestry's potential acquisition of Capri is making headlines. This merger could reshape the landscape of the handbag market, impacting brands like Coach, Kate Spade, and Michael Kors. Tapestry CEO Joanne Crevoiserat emphasized how this move aims to put more stylish handbags in the hands of more customers, enhancing brand vibrancy and market reach. While the FTC worries about competition and potential price increases, both companies claim that their combined expertise and resources will provide cost-saving advantages. #SchroderDavisLaw #FashionLaw #EntertainmentLaw #IPLaw https://lnkd.in/ejx5HTsX