Fashion giant Capri Holdings has reached an agreement to sell the renowned Italian luxury brand Versace to Prada for close to $1.4 billion. The deal was in jeopardy due to market instability following President Donald Trump's tariffs but ultimately went through. Capri, which owns Michael Kors and Jimmy Choo, witnessed a surge in stock prices after reports surfaced about Prada's offer of approximately 1.5 billion euros to acquire Versace. The agreement stipulates that Prada will pay $1.375 billion in cash, with the completion of the transaction expected in the latter half of the year 2025. Initially, there were concerns regarding Prada's family approving the deal, but final clearance was received on Thursday morning. Capri's shares experienced a sharp decline of nearly 11% in early trading due to the news. Previously, the share value of Capri stood at over $40 until a legal block was placed on its acquisition by Tapestry, the owner of Coach.