Prada set to acquire Versace for $1.4 billion after EU’s nod

Prada has received official clearance from European Union regulators for its €1.25 billion acquisition of Versace, paving the way for one of the most significant shake-ups in the luxury fashion industry. 

On Tuesday, the European Commission approved Prada’s acquisition of Versace, stating that it would not raise competition concerns, as reported by Vogue. The deal is set to close by the end of this year.

The acquisition comes as Capri Holdings, Versace’s parent company, shifts its focus toward its other luxury labels, including Michael Kors and Jimmy Choo. For Prada, the move represents more than an expansion, it is a strategic step to strengthen its position in the global luxury market.

The transaction is expected to be completed in the second half of 2025, ushering in a new chapter for both iconic fashion houses.

As per Vogue, Prada Group in April 2025 announced its plans to buy Versace from its previous owner, Capri Holdings, for €1.25 billion. Versace had been put up for sale by Capri, which also owns Michael Kors and Jimmy Choo, after the US Federal Trade Commission blocked its merger with Coach owner Tapestry.

Capri reported that the Italian brand is in need of a turnaround: in fiscal 2025, Versace’s revenues declined 15% to $193 million. In contrast, Prada Group has outperformed the market despite a slowdown (sales were up 9% to €2.74 billion in the first half of 2025).