Fashion retailer Diesel has acquired a majority stake in Dutch fashion brand Viktor & Rolf.

Diesel’s parent company Only The Brave – which is owned and run by Diesel founder Renzo Rosso – has acquired the holding in the brand, run by its eponymous artist and designer duo, for an undisclosed amount.

The move signals that mergers and acquisitions in the high-fashion arena are buoyant despite the credit crunch.

Only The Brave wants to create licensing agreements, open stores and build a luxury brand for Viktor & Rolf.

Rosso said: “Ever since the beginning of their career, Viktor & Rolf have tickled my curiosity for their unbelievable out-of-the-box creativity. We studied each other for more than two years to get to this point.”

Viktor & Rolf created a fashion range for H&M in 2006 and are exhibiting at London’s Barbican Art Gallery presently.