Prada Secures EU Approval for Versace Acquisition

Prada formally seals the purchase of Versace. The Italian firm Versace, until now in the hands of the U.S. group Capri Holdings, returns to Italian hands after being acquired by Prada, now with the approval of the European Commission, which has determined on Tuesday that the operation will not raise competition concerns.

According to Brussels, this acquisition will not raise competition concerns “given the limited market shares of the companies resulting from the proposed transaction”.

After months of negotiations and rumors on the table, the U.S. group liquidated in April one of its most iconic assets in the midst of a strategic restructuring, betting on the growth of the fashion and accessories brand Michael Kors and the profitability of the footwear brand Jimmy Choo.

Prada receives authorization for the purchase of Versace for 1.25 billion euros

Capri Holdings thus released weight to concentrate on its strategic reconfiguration. The New York-based luxury conglomerate announced in April, through a statement, the signing of the agreement with the Prada group, in a transaction subject to regulatory approvals that today, finally, have allowed to close the purchase.

This transaction represents for the U.S. company the end of its adventure in European fashion and its dream of becoming the quintessential U.S. luxury group to face the French Kering and LVMH. Its idyll with Versace has been far from giving the results expected by the company led by John D. Idol.