Luxury fashion group Prada (1913.F) is in talks to acquire Versace, owned by Capri Holdings, in a deal that could unite two Italian fashion giants. Prada CEO Andrea Guerra has traveled to New York with Lorenzo Bertelli, the chief marketing officer and son of shareholders Miuccia Prada and Patrizio Bertelli, amid these discussions, said Reuters.

Capri Holdings recently announced that Donatella Versace will step down as Versace’s main designer after nearly 30 years. Starting April 1, Dario Vitale from Prada’s Miu Miu brand will take over as chief creative officer of Versace, known for its Medusa head logo. Morningstar analysts suggest this move could pave the way for Prada’s acquisition of the brand.

The potential deal, valued at around 1.5 billion euros ($1.64 billion), has been under scrutiny since early March. Last month, Prada was granted four weeks to assess Versace’s financial data, signaling serious intent. The fashion house has also been linked to Capri’s Jimmy Choo brand, hinting at broader ambitions.

If successful, the acquisition would merge Prada’s minimalist luxury with Versace’s bold, glamorous style, strengthening Prada’s foothold in the global luxury market. Founded in 1913, Prada is a titan of understated elegance, while Versace, launched in 1978, thrives on extravagant designs. The combination could redefine Italian fashion’s influence worldwide.

Guerra’s New York visit and the creative leadership shift at Versace indicate negotiations are progressing, though neither company has confirmed the deal. As Prada evaluates its next steps, the fashion industry awaits a potential blockbuster merger that could reshape the luxury landscape.