In a significant move for the luxury fashion industry, the European Commission has given the nod for Farfetch to acquire a 47.5 percent stake in Yoox Net-a-porter (YNAP). This decision follows earlier approvals from the U.K. Competition and Markets Authority and solidifies the acquisition first announced in August 2022.
With this approval, Richemont, the current owner of YNAP, aims to finalize the acquisition in the upcoming quarter. However, some conditions are yet to be met, with further announcements anticipated soon. The EU Commission has indicated that this acquisition won’t disrupt competition in the luxury market, reaffirming its support for the move.
In a broader scope, YNAP’s parent company intends to transition a majority stake in YNAP to Farfetch and Alabbar, YNAP’s Middle Eastern partner. Richemont is set to retain a 49.3 percent stake in YNAP, and Farfetch plans to secure the entirety of YNAP within the next five years, based on certain terms. In exchange, Richemont is poised to obtain Farfetch Class A ordinary shares, accounting for 12 to 13 percent of Farfetch’s total issued share capital.
The agreement also includes Symphony Global, an investment venture of Mohamed Alabbar, taking a 3.2 percent stake in YNAP. The overarching objective is to metamorphose YNAP into a neutral luxury industry online platform.
Emphasizing the future digital aspirations, Richemont and Farfetch anticipate a synergistic relationship. They aim to boost the global reach and quality of Richemont’s brands online, leveraging Farfetch’s advanced tech. YNAP and Richemont’s maisons are also set to adopt Farfetch’s platform solutions.
Reflecting on the significance of this deal, Richemont chairman Johann Rupert expressed that this partnership aligns with his vision of establishing YNAP as an impartial platform for the luxury sector. The alliance will empower various luxury brands, both prominent and emerging, to venture online with Farfetch’s expertise.
Farfetch CEO José Neves underlined the transformative potential of this deal, asserting that Farfetch’s tech prowess would significantly elevate Richemont’s brands, ushering them into an inclusive digital marketplace.