Tapestry Inc.’ stock jumped 6.8% early Thursday, while Capri Holdings Inc.’s stock fell about 4%, after Tapestry said it’s terminating its $8.5 billion merger agreement with its smaller rival.

Capri Holdings Ltd and Tapestry Inc. scrapped their $8.5 billion plan to merge after a court order froze the proposed combination of the US fashion companies due to antitrust regulators’ objections.

Fashion companies Capri Holdings Limited and Tapestry -- parent companies behind the Coach and Michael Kors brands -- ended their $8.5 billion merger deal Thursday. The deal was blocked by the Federal Trade Commission.

Tapestry announced the termination of the merger, leaving question marks about how both companies will fill the void.

Tapestry—the owner of luxury brands such as Kate Spade and Coach—and Capri—owner of Michael Kors, Versace and Jimmy Choo ended their merger efforts after a federal lawsuit sought to block the deal.

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Capri Holdings Ltd and Tapestry Inc. have ended an $8.5 billion plan to merge after a US court order freezing the deal due to US antitrust regulators’ objections.

Capri Holdings (NYSE:CPRI) and Tapestry, Inc. (NYSE:TPR) have mutually agreed to end their $8.5B merger deal. “Capri and Tapestry mutually agreed that terminating the merger agreement at this time is in the best interest of both companies,

Tapestry and Capri Holdings have scrapped their merger plans a few weeks after the Federal Trade Commission sued to block the deal. Tapestry shares gained 6.7% in premarket trading, while Capri stock fell 4.

Capri Holdings Ltd (NYSE:CPRI) and Coach owner Tapestry (NYSE:TPR) canceled their merger on Thursday after the Federal Trade Commission (FTC) blocked the proposed deal. The news sent Tapestry shares rising around 5% in premarket trading,