(Reuters) -The U.S. Federal Trade Commission (FTC) said on Monday it was suing to block Coach parent Tapestry's $8.5 billion deal to buy Michael Kors owner Capri.

Shares of Tapestry were down about 1% in extended trading, while Capri was up 0.6%.

"If allowed, the deal would eliminate direct head-to-head competition between Tapestry's and Capri's brands," the FTC said in a statement.

Earlier in April, the companies had received regulatory clearance from the European Union and Japan for their deal, that would bring top luxury labels such as Kate Spade and Jimmy Choo under one roof.