The Federal Commerce Fee is making ready to sue to dam a luxurious style mega merger, Tapestry’s $8.5 billion takeover of Capri Holdings, two individuals with data of the matter mentioned.

The F.T.C.’s 5 commissioners are anticipated to fulfill subsequent week to debate the case, a transfer that might precede a proper vote on whether or not to file a lawsuit, the individuals mentioned. The individuals, who weren’t approved to debate the deliberations, mentioned that it was nonetheless potential that the company may choose to not sue.

The deal, supposed to carry collectively labels reminiscent of Tapestry’s Coach and Kate Spade with Capri’s Versace and Michael Kors, would create an American luxurious conglomerate to compete with European powerhouses like Louis Vuitton’s mum or dad, LVMH, and Kering, the proprietor of Gucci.

Monopoly circumstances within the style trade are uncommon, as a result of there isn’t a scarcity of recent labels seeking to undercut legacy manufacturers. “It’s the paradigmatic a part of the financial system the place there may be ample competitors,” mentioned Howard Hogan, the chair of the style, retail and client observe on the regulation agency Gibson Dunn.

Traders have more and more guess towards the deal, which was introduced in August final yr, being accomplished: Shares of Capri have fallen greater than 20 p.c this yr, whereas Tapestry’s have gained 6 p.c. (Sometimes, shares of the goal of takeover acquire whereas shares of the customer fall.) Capri’s shares slipped additional in premarket buying and selling on Wednesday, whereas Tapestry’s gained.

The F.T.C. has been scrutinizing the deal for months, even because it was authorised by regulators within the European Union and Japan. U.S. regulators may argue that placing Michael Kors and Coach below the identical roof might restrict the necessity for these manufacturers to compete on value, which may, in flip, make their merchandise costlier for shoppers.

Tapestry and Capri may, in flip, level to the rise of upstart manufacturers like Cult Gaia and Aupen, which celebrities like Taylor Swift have helped make well-liked.

The case may invite political scrutiny. Regulators typically introduce competitors lawsuits in the event that they suppose a case has a very robust likelihood to determine precedent that can be utilized in future circumstances, because the Justice Division did three many years in the past in its failed effort to block Gillette’s takeover of a luxury fountain pen company, mentioned William Kovacic, a former F.T.C. chair.

However the Tapestry-Capri deal, Mr. Kovacic added, is “not a case that has nice attraction as a manner of defending the downtrodden.”

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