British News Agency

The deal comes after months of speculation about a possible merger between the two Italian fashion houses, and more recently, rumors of the acquisition collapsing following market volatility in response to President Trump's tariff policies.

Insiders report that the original deal was expected to be worth €1.43 billion, but recent market turbulence and trade uncertainty, which have particularly affected the retail sector, led to a discount of approximately €180 million.

Capri, which also owns Michael Kors and Jimmy Choo, originally purchased Versace in 2018 for $2.1 billion. Last year, after the U.S. Federal Trade Commission blocked a proposed $8.5 billion acquisition of Capri by American group Tapestry (owner of Coach and Kate Spade), Capri came under pressure to sell Versace in order to reduce its debt. According to sources close to the deal, Prada was among the earliest bidders.

In a statement confirming the news, Prada Group Chairman and CEO Patrizio Bertelli said the group is "ready and well-positioned to write a new chapter in Versace’s history." He added that both companies "share a strong commitment to creativity, craftsmanship, and heritage."

Although Prada and Versace are considered rivals in Italian fashion, their designs are starkly different. Versace champions traditional femininity with short skirts, high heels, and voluminous hairstyles, while Miuccia Prada, who holds a PhD in political science and was a Communist before joining the family business in 1970, is often dubbed “fashion’s intellectual.”

Miuccia Prada has previously described her own work as "ugly clothes made from disgusting fabrics."

Nonetheless, the two women share an unlikely friendship. In a 2012 interview with The Telegraph, Versace said: "We just talk, talk, talk. She’s very inspiring. We tease each other and learn from each other. She says, ‘I can never do sexy clothes, but I love them.’ And I say, ‘Well, I love what you do.’"