Italian luxury fashion label Prada on Thursday signed an agreement to acquire a 100% stake in its rival brand Versace from the Capri Holdings group. When news about the $1.375 billion buy hit social media,

Prada has just agreed to buy Versace for $1.38 billion, weeks after Donatella Versace, the original owner, stepped down.

Prada will buy rival fashion house Versace for $1.4 billion in a deal uniting the two biggest names in Italian luxury, the brands announced Thursday. The deal is part of a series of shakeups at Versace, where longtime creative leader Donatella Versace stepped aside last month.

Prada is getting a discount but not a good deal. After weeks of talks with Michael Kors-owner Capri , the Hong Kong-listed Italian group agreed to pay 1.3 billion euros ($1.4 billion) for Versace. Given Capri paid $2 billion for the brand famous for its Medusa logo in 2018,

The purchase of Versace exposes the agency’s antitrust blunder.

Prada is reportedly set to acquire Versace from Capri Holdings for $1.38 billion, scoring a $200 million discount on the previous valuation of the deal due to global trade uncertainties. Capri, which is grappling with debts and weak market demand,

Prada has agreed to buy its smaller rival Versace in a billion dollar deal to unite two of the biggest designer fashion labels. The deal to unite the two Italian brands has an estimated value of $1.36bn (£1.

Prada's management sees untapped potential in Versace’s global brand recognition, aiming to evolve its bold aesthetic and leveraging the group’s platform.

On Thursday, in the biggest luxury deal of the year, Prada announced it was buying Versace for 1.25 billion euros ($1.38 billion) from Capri Holdings, a beleaguered New York group that at one point styled itself as the American answer to the great fashion groups of France.