The Federal Trade Commission successfully halted Tapestry Inc.’s $8.5 billion acquisition of Capri Holdings with a preliminary injunction, likely derailing the mega-acquisition.

Capri shares fell 47.1% to $22 in after-hours trading, well below the $57 buyout price agreed to with Tapestry.

Tapestry shares, on the other hand, gained 10.9% to $49.31, likely because investors breathed a sigh of relief given the weakness in Capri’s Michael Kors business since the deal closed in August 2023.

TAPESTRY is a global house of iconic brands, the likes of which no one in Europe knows…