Prada heir says Italian group is open to M&A: During an occasion at the launch of a knitwear factory in Torgiano, Italy, Lorenzo Bertelli, heir to the Italian billionaire family, stated that Prada is prepared to consider possible acquisitions in the luxury sector.

Bertelli informed reporters on Tuesday that the company has been and would continue to be open to examining options.

When asked about the potential possibilities of acquiring Giorgio Armani SpA, Bertelli chose not to speculate on specific objectives. He made the comment that he had no idea what founder Giorgio Armani had in store for the company.

In an interview with Bloomberg News, Giorgio Armani, who is getting close to 90 years old, hinted at possible changes that could be in store for his design company. He seemed receptive to the notion of merging his fashion empire, which led many to wonder what would happen to the many family-run businesses in Italy’s luxury sector.

French luxury conglomerates like Kering SA and LVMH Moet Hennessy Louis Vuitton SE have been aggressively growing their portfolios, while smaller Italian labels like Prada, Salvatore Ferragamo SpA, Moncler SpA, and Ermenegildo Zegna NV have been struggling to keep up.

Increasing internal production and streamlining the supply chain have been key priorities for Prada, which has led to an emphasis on investing in Italian manufacturing suppliers. In a speech delivered by CEO Andrea Guerra, the firm highlighted its strategy of merging smaller suppliers in order to attain stability and scale, and it reaffirmed its intention to invest in Italy.

Miu Miu is part of Prada’s strong first-quarter sales, which the fashion house revealed last month, surpassing its main competitors. As a counterpoint, consider the results achieved by the French luxury conglomerate Kering, whose crown jewel label Gucci is now reinventing itself in a more niche market.