European authorities greenlight Farfetch’s YNAP acquisition
It was the last regulatory authority required to provide clearance, after the CMA approved the move earlier this year
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Online retailer Farfetch has officially been given the green light by European authorities to acquire a large stake in Yook Net-A-Porter (YNAP).
The European Commission unconditionally cleared its acquisition of a 47.5% stake in YNAP from Richemont, the owner of Cartier.
It was the last regulatory authority required to provide clearance, after the CMA approved the move earlier this year.
The partnership between Farfetch and Richemont also involves the acquisition by Symphony Global, one of the investment vehicles of Emirati investor Mohamed Alabbar, of a 3.2% stake in YNAP.
In addition, it involves the adoption by YNAP and the Richemont Maisons of Farfetch Platform Solutions, as well as the launch of e-concessions on the Farfetch Marketplace by most Richemont Maisons.
Completion of the deal “remains subject to certain other conditions that Richemont and Farfetch are working towards fulfilling”.
Richemeont first revealed it agreed a deal to offload a majority stake of its e-commerce unit to Farfetcth and Alabbar last year.
At the time, Johann Rupert, chairman of Richemont, said: “Today’s announcement is a significant step towards the realisation of a dream I first voiced in 2015 of building an independent, neutral online platform for the luxury industry that would be highly attractive to both luxury brands and their discerning clientele.
“We knew back then that if we wished to control our own destiny and protect the uniqueness of the luxury industry as it was digitalised, we would need to collaborate as the task was too big to undertake on our own.”
He added: “Farfetch’s sophisticated technology will enable Richemont Maisons to benefit from the best route to market and realise their Luxury New Retail vision, while implementing a hybrid model at YNAP will greatly enhance its prospects. We have adjusted YNAP’s valuation to bring it in line with today’s market environment and will receive, in exchange, shares in Farfetch, further aligning our interests.
“As a supportive shareholder and a Luxury New Retail partner, we will look to build the perfect platform for the future, enabling the luxury industry to flourish in an increasingly digital economy.”
