Prada gets the green light to buy Versace and create a new Italian luxury giant

The European Union approved the acquisition of Versace by Prada, another Italian company, on Tuesday after determining that there are no competition issues with the agreement.

In April, Prada declared that it will pay $1.465 billion to the US firm Capri Holdings to acquire Versace.

With a combined revenue of almost $7.035 billion, the two iconic brands will form an Italian luxury conglomerate that can more effectively compete with market titans like LVMH and Kering.

Just prior to this transaction, Donatella Versace, who had been elevated to the position of creative director of the fashion brand in 1997 after her brother Gianni was murdered, had announced her retirement from the Prada group and that Dario Vitale would take her place.

Before the year is out, Prada, which also owns the upstart and daring brand Miu Miu, intends to finish the acquisition of Versace.