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Prada will buy fashion rival Versace in a massive 1.3 billion deal. Prada has sealed a $1.375 billion deal to acquire Versace from Capri Holdings in one of the biggest luxury mergers of this century.

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Prada struck a deal today to buy smaller rival Versace from Capri Holdings for $1.375 billion, which includes its debt, in a move that unites two of the biggest names in Italian fashion.