Two of the biggest names in Italian fashion, Prada and Versace, will merge, the companies announced Thursday. Prada shelled out $1.375 billion to acquire its smaller rival—which has been operating at a loss in the last few quarters—from Capri Holdings. “Versace has huge potential. The journey will be long and will require disciplined execution and patience,” said Andrea Guerra, the CEO of Prada. The company’s chairman, Patrizio Bertelli, added that the acquisition gives Versace “a strong platform” to build on. Capri Holdings, which also owns Jimmy Choo and Michael Kors, had been negotiating the terms of the deal with the Prada family for over a month. The merger strengthens the Italian corner in a luxury market dominated by French companies like Louis Vuitton’s owner, LVMH. The Financial Times reported earlier this week that the effect of President Donald Trump’s global trade war allowed Prada to negotiate a discount of more than $200 million on the sale. Vuitton’s
