The Prada Group has announced the acquisition of its rival Versace for over $1.3 billion

Italian fashion firm Prada announced that it reached "a definitive agreement" with U.S. group Capri Holdings to acquire 100% of rival Versace for over $1.39 billion.

The merger of the two legendary brands will create an Italian luxury group with over $6.6 billion in revenues, enabling it, as AFP explained, to compete with other giants in the sector, such as France's LVMH and Kering.

"With its highly recognizable aesthetic, the brand is a strongly complementary addition to the Prada Group’s portfolio and displays significant untapped growth potential, leveraging multiple value creation levers," Prada said in a statement.

Similarly, he explained that within the Prada Group, Versace will maintain its creative DNA and authenticity.

"Within the Prada Group, Versace will maintain its creative DNA and cultural authenticity, while benefiting from the full strength of the Group’s consolidated platform, including industrial capabilities, retail execution, and operational expertise," the Italian group emphasized.

This deal goes against the trend of recent years, which has seen major Italian fashion names, such as Gucci, Fendi, and Bottega Veneta, pass into the hands of French competitors.