The European Commission said on Tuesday it has given its green light to the acquisition of fashion group Versace by Italy’s Prada.

Earlier this year Prada struck a $1.38 billion deal to buy smaller rival Versace from Capri Holdings.

The European Commission said the deal poses no competition concerns.

By Elisa Anzolin; Editor: Giulia Segreti

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Prada Group to Buy Versace for €1.25 Billion

Prada plans to invest an additional €250 million in relaunching Versace, which has struggled to keep up with bigger heritage brands since selling to Michael Kors parent Capri Holdings in 2018.