EU Commission Approves Farfetch Acquisition of YNAP from Richemont

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Europe’s competition authority had widely been expected to wave through the deal after it was approved in the U.K., and other regions, earlier this year.

The approval comes seven months after the U.K. Competition and Markets Authority approved the transaction, which was first announced in August 2022.As reported, YNAP’s parent Compagnie Financière Richemont plans to sell a majority stake in Yoox Net-a-porter Group to Farfetch and Alabbar, YNAP’s partner in the Middle East.

In exchange, Richemont will receive Farfetch shares, expected to represent 12 to 13 percent of Farfetch’s issued share capital. The two partners have said they plan to work together to accelerate the quality and global penetration of the Richemont brands online. The wheels of the deal are already in motion: In the first six months of fiscal 2023, Richemont reported a loss of 766 million euros following the noncash write-down of assets linked to the proposed sale of a majority stake in YNAP.

He said the plan is to continue building brand equity at the company’s luxury maisons without having to worry about running a digital business.

 

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