European Union anti-competition authorities will decide on October 20 whether Portuguese DNA unicorn Farfetch is allowed to acquire a stake in Richemont, owner of luxury brands such as Cartier, in a deal with Saudi businessman Mohamed Alabbar.
Under the terms of the agreement, announced at the end of August, Alabbar, Symphony Global and Farfetch will purchase stakes of 3.2% and 47.5%, respectively, in YOOX Net-a-Porter Group (YNAP), Richemont’s electronics company. Trade platform.
Richemont will acquire between 53 million and 58.5 million Class A ordinary shares in Farfetch, which should represent between 12% and 13% of the issued share capital on the exchange, as well as the equivalent of approximately 265 million euros in Class A shares in Farfetch. The five. Years after the first deal is completed.
This deal will see this company, along with other Richemont companies, adopt Farfetch Platform Solutions, the e-commerce platform developed by Farfetch.
In other words, this agreement includes a series of investments in digital services by luxury players, as they turn to new channels to reach customers, encouraged by the shift to online shopping during the pandemic.
Farfetch’s CEO and chairman want to “build an independent and neutral online platform for the luxury industry that is highly attractive to both luxury brands and their discerning customers,” they wrote in a statement, adding that Farfetch’s technology “will enable May Richemont to leverage the best route to market and realize her vision for the luxury business.” New luxury retail.
EU competition authorities can approve the deal with or without remedies after an initial review, or they can open a four-month investigation if the deal raises any concerns.
“Wannabe internet buff. Future teen idol. Hardcore zombie guru. Gamer. Avid creator. Entrepreneur. Bacon ninja.”