EU Approves Farfetch's Acquisition of Majority Stake in YNAP from Richemont

Despite ongoing issues at Farfetch, EU regulators give go-ahead for luxury e-commerce aggregator to purchase 47.5% stake in Yoox Net-A-Porter from Richemont; Farfetch expected to acquire the entirety of YNAP over next five years, making it a "neutral platform for the luxury industry."

• EU regulators have approved Farfetch's acquisition of a 47.5% stake in Yoox Net-a-Porter (YNAP) from Richemont. Farfetch is expected to slowly acquire the entirety of YNAP over the next five years in a bid to create a neutral platform for the luxury industry.
• Following the deal, Richemont will retain a 49.3% stake in YNAP and in turn receive Farfetch Class A ordinary shares, accounting for 12-13% of Farfetch’s issued share capital.
• Despite Farfetch’s financial struggles, with shares down by more than 60% within the year, share prices surged by up to 15% following the deal's announcement. Richemont’s share performance took a milder stance after the EU’s approval.
• Part of the partnership entails Farfetch and Richemont working together to boost the quality and global penetration of Richemont’s brands online by leveraging Farfetch’s technology; this will include YNAP and other Richemont maisons employing Farfetch Platform Solutions.
• Farfetch’s acquisition of YNAP is also poised to provide the company with added liquidity as Richemont has promised millions in cash and a decade-long credit facility, post-sale

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