(April 10): Prada SpA agreed to buy Versace for US$1.38 billion (RM6.17 billion) in cash in a deal aimed at strengthening its position as Italy’s largest fashion group.

The Milanese company, controlled by billionaire designer Miuccia Prada and her husband Patrizio Bertelli, expects the transaction to close in the second half of this year, the companies said on Thursday. Bloomberg News reported on March 2 that Prada was near a deal to buy Versace from Capri Holdings Ltd, which paid US$1.8 billion for the brand in 2018.

The purchase, the largest in Prada’s 112-year history, returns Versace to Italian ownership and could put Prada in a better position to compete with bigger luxury rivals such as LVMH and Kering SA. The deal also gives Versace a shot at the turnaround Capri hasn’t been able to deliver.

The agreement moved ahead despite global market turmoil triggered by US President Donald Trump’s tariff offensive. Prada has negotiated for months to buy the fashion house founded by Gianni Versace in the 1970s and known for its flashy, ready-to-wear designs.

Uploaded by Tham Yek Lee