Designer brand aims to expand Italian influence through a new acquisition; value for sale of the fashion house is about € 1.5 billion
The renowned Italian fashion house is in advanced negotiations to acquire the iconic For approximately 1.5 billion euros, as reported by Bloomberg. This potential acquisition is part of Prada’s broader strategy to expand its influence on the global luxury market, while strengthening the Italian presence in the sector. The purchase of Versace, which was founded by Gianni Versace in 1978, would allow Prada, based in Milan, to create a more robust Italian conglomerate, capable of competing with sector giants such as LVMH and Kering, which currently controls Gucci.
In recent times, Prada has been experiencing a significant increase in its sales, especially in the third quarter of last year, driven by the growing popularity of the brand Miumou among younger consumers. The acquisition of Versace could mark a reversal in the trend of decades, where Italian fashion groups were often acquired by foreign competitors, such as Gucci and Valentino. However, it is important to note that, despite this potential acquisition, Prada is still far from reaching the LVMH market value, which exceeds 320 billion euros, while the Italian company is worth just over 21 billion euros.
LVMH, which has prestigious marks such as Louis Vuitton, Christian Dior and Fendi, is led by Bernard Arnault, the richest man in Europe and one of the ten richest in the world. The possible acquisition of Versace by Prada could position the Italian company more competitively in the global luxury market. However, there is still a significant difference in market value compared to the French giant.
*With information from Bruno Meyer
*Report produced with the aid of AI
