NEW YORK — A U.S. District judge has blocked the merger of Coach and Michael Kors handbag manufacturers, arguing that the consolidation would diminish competition and adversely affect consumers.

U.S. District Judge Jennifer Rochon delivered her ruling on Thursday, emphasizing that Tapestry Inc. and Capri Holdings are significant competitors in the market. She pointed out that merging these companies would eliminate direct competition, likely resulting in increased prices for consumers shopping for their products.

This ruling followed a week-long series of testimonies presented to the court. In the aftermath of the decision, Capri’s stock price plummeted by over 50% in after-hours trading, while Tapestry’s shares saw a rise of 12%.

The ruling was issued six months after the Federal Trade Commission (FTC) filed a lawsuit to prevent Tapestry’s $8.5 billion acquisition of Capri, stating that the merger would remove vital competition in the affordable luxury handbag market, including well-known brands like Coach and Michael Kors.

Moreover, the FTC expressed concerns that the merger could reduce motivation for the companies to compete for talent and, as a result, potentially lead to lower wages and diminished workplace benefits for their employees. The agency noted that if the merger were to proceed, the combined entity would have around 33,000 employees globally.

At the time of the ruling, both Tapestry and Capri were unavailable for comment.