Capri Holdings’ shares plummeted nearly 46% on Friday following a US judge’s decision to block its $8.5 billion merger with Tapestry, the parent company of Coach. This merger aimed to create a US luxury powerhouse by uniting brands like Coach, Kate Spade, Versace, and Michael Kors under one umbrella. Capri’s stock was trading at $22.46, significantly lower than Tapestry’s offer price of $57 per share, resulting in a $2.2 billion reduction in market capitalization. The Federal Trade Commission (FTC) had previously sued to block the deal, citing concerns over reduced competition in the handbag market. Tapestry’s shares rose nearly 15% following the news, and while the company plans to appeal the ruling, analysts noted that Capri’s weak performance and the extended timeline of the deal have diminished its attractiveness as an acquisition target.