The European Union has given the green light for Prada to acquire Versace, stating that the deal does not pose any competition issues. This acquisition, valued at $1.4 billion, was initially disclosed by the Capri Holdings group in April.
The merger of Italian fashion brands will create a new high-end conglomerate with revenues exceeding $7 billion, enabling it to rival major industry players like LVMH and Kering.
Versace was established in 1978 by Gianni Versace and gained prominence through his sister Donatella Versace, who stepped down as the company’s creative director in March 2025.
In 2018, Versace was acquired by the Capri Holdings parent company, known for managing luxury brands like Michael Kors and Jimmy Choo. Capri paid $2 billion for Versace, which is higher than what it will get from the sale to Prada.
Prada plans to finalize the acquisition of Versace by the close of 2025. Additionally, the company also possesses the label Miu Miu, which targets a younger demographic.
Newcomer in the weight category
The acquisition of Versace by Prada reinforces Italy’s presence in the luxury goods industry, which is currently dominated by American and French companies like LVMH, the owner of Louis Vuitton and Dior.
Italy does not have a similar group of companies in its luxury goods segment compared to other countries, even though it accounts for 50% to 55% of the total production of personal luxury goods, according to the g1 report.
Prada is the leading Italian luxury fashion group in terms of revenue, with a market capitalization of approximately €14 billion. Nonetheless, when compared to its competitor LVMH, which is valued at around $259 billion, Prada’s value seems significantly less significant.
In the future, people will focus on businesses like Armani and Dolce & Gabbana, located in Milan, which are among the rare companies in the country that remain privately owned and not publicly traded.
The foundation inheriting Giorgio Armani SpA is required to sell 15% of the company to other groups per Giorgio Armani’s will.
- Economic situation
- Business operations
- Global
- Business
- Capri Holdings Limited
- Italy
- Luxury
- Prada
- I am sorry, but you have not provided any text to be paraphrased. Please provide the text that you would like me to paraphrase.
- European Union
- Versace
