com.hk/comment"}}]}]17:T6b8,Prada (1913) is moving closer to a deal to buy Versace from Capri after agreeing to a price of nearly EUR1.5 billion (HK$12.15 billion), according to people familiar with the matter.

Milan-based Prada and Capri could finalize a deal for the Italian luxury clothier this month, said the people, asking not to be identified because discussions are private. Talks are progressing after initial due diligence didn't find any risks, the people said.

The timing and valuation could change and negotiations could still fall apart, the people added. Capri, which bought Versace in 2018 for about EUR1.8 billion, didn't immediately respond to requests for comment on Sunday.

Prada declined to comment.

Prada shares rose 3.47 percent yesterday in Hong Kong, where the stock was listed in 2011 in a nod to the importance of the Chinese market.

A potential acquisition of the fashion house founded by the late designer Gianni Versace in 1978 would allow Prada to create a larger Italian player to better compete with global luxury groups such as LVMH and Kering.

A purchase would reverse a decades-long trend of Italian fashion groups, including Gucci and Valentino, being taken over by foreign rivals.

"Prada would be well positioned to realize Versace's brand potential in the long term, potentially paving way for the group to become Italy's answer to the French luxury conglomerates," UBS analysts led by Susy Tibaldi said in note.

Bloomberg

Prada closes in on Versace