Coach parent Tapestry’s $8.5 billion deal to buy Michael Kors owner Capri Holdings has received regulatory clearance from the European Union and Japan, the companies said on Monday.

The merger, which would bring top luxury labels such as Tapestry’s Kate Spade, Stuart Weitzman and Capri’s Jimmy Choo and Versace under one roof, still awaits approval from the United States.

The US Federal Trade Commission sought additional information on the planned merger from the two companies in November, months after the deal was announced.

A merger between the two companies would help Tapestry compete better with Paris-listed LVMH in the European luxury market, even as demand for expensive handbags and accessories remains choppy in the United States.

The deal is expected to close in 2024 and add to Tapestry’s adjusted profits immediately, the companies said last year.

By Juveria Tabassum; Editing by Devika Syamnath

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