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 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.

The parent companies of brands such as Coach, Kate Spade, Versace and Michael Kors decided not to proceed with a court battle.