Italian luxury brands merge, PRADA is close to acquiring Versace for 1.5 billion euros

In the context of a slowdown in the global luxury goods industry, Italy's two top luxury fashion giants may be on the verge of a historic "strong alliance" merger.

On Monday, according to the Financial Times, Italian luxury giant Prada Group is set to acquire Versace from Capri Holdings for approximately €1.5 billion.

Sources revealed that Capri Holdings initially priced Versace at €3 billion, and Prada has been in intermittent negotiations with them regarding the acquisition of Versace for several months, with an agreement expected to be reached soon, and the deal could be completed "within weeks."

Prada co-founder Miuccia Prada publicly acknowledged at the Milan Group fashion show at the end of last year that "everyone is paying attention" to Versace, hinting at the potential authenticity of this deal.

Capri Holdings, headquartered in New York, owns brands such as Michael Kors and Jimmy Choo. For Capri Holdings, the sale of Versace is part of its strategic adjustment. In 2018, the group acquired this Italian luxury brand from the late Gianni Versace family for approximately €1.85 billion.

Last year, Capri Holdings sought to merge with Tapestry Group, which owns brands like Coach, but the $8.5 billion merger plan was ultimately halted due to antitrust issues, prompting Capri Holdings to accelerate its business restructuring.

Prada Group will announce its full-year results for 2024 this Tuesday, which may bring more related news. As of last Friday's close, Prada's stock price was HKD 66.2.

Regarding Prada Group, despite the overall slowdown in the luxury goods industry, the group's financial performance remains strong, driven by the robust development of its Miu Miu brand. As co-founders Miuccia Prada and Patrizio Bertelli prepare to pass the baton to their son Lorenzo Bertelli, Prada is actively looking to expand through acquisitions. Industry insiders point out that Versace's bold style contrasts sharply with the understated elegance of Prada's mainline brand, and the acquisition will bring a diversified style advantage to Prada Group. Currently, in addition to the Prada mainline and Miu Miu, Prada Group also owns the British footwear brand Church's.

If Prada Group successfully acquires Versace, it will be one of the most notable transactions in the luxury goods industry in recent years. The merger of these two iconic Italian brands is expected to create powerful synergies, enhancing Prada Group's overall competitiveness and market share. At the same time, this transaction may trigger further consolidation in the luxury goods industry