South Africa, April 11 -- The deal to unite the two Italian brands has an estimated value of $1.36bn (£1.06bn), the Prada Group said.

Its acquisition of Versace will create a multi-billion-dollar luxury fashion group, putting the brands in a position to compete with the likes of French luxury fashion conglomerates LVMH and Kering.

According to BBC, negotiations to buy Versace between Prada and Capri began in February.

Founded in 1978 in Milan, Versace is one of the leading international fashion design houses and epitome of Italian luxury worldwide. Building on a remarkable brand awareness, Versace stands as a distinctive asset in the luxury landscape.

Deeply rooted in the history of fashion, the brand displays strong potential to...