Johan Rupert’s Richemont gets EU support to digitise luxury brands
The European Commission (EC) has unconditionally confirmed the acquisition by British-Portuguese online luxury fashion retail platform, Farfetch, of a 47.5% stake in YOOX NET-A-PORTER (YNAP).
The approved deal is for the issuance of Farfetch class A ordinary shares to Johan Rupert-owned luxury group Richemont, which is listed in both Johannesburg, South Africa, and Switzerland.
Richemont first announced in 2021that it was in advanced discussions with Farfetch, with a view to enhancing the partnership it established a year previously.
The scope of the discussions included Richemont Maisons leveraging Farfetch technology to accelerate its new luxury retail developments, and Richemont Maisons joining the Farfetch marketplace.
Richemont Maisons is known for jewellery, watches, fashion and accessories.
At the time, Richemont added that Farfetch would invest directly in world’s leading online luxury and fashion retailer, YNAP as a minority shareholder, with other investors to be invited to participate alongside.
The EC was the last regulatory authority required to provide clearance, and that has been granted.
The partnership between Farfetch and Richemont, announced today, involves the acquisition by SymphonyGlobal of a 3.2% stake in YNAP, making YNAP a neutral online platform for the luxury industry.
Symphony Global is one of the investment vehicles of Dubai's billionaire investor Mohamed Alabbar.
Also, it said the Farfetch and Richemont partnership involves YNAP and the Richemont Maisons adopting Farfetch’s platform solutions and the launch of e-concessions on the Farfetch marketplace by most Richemont Maisons.
E-concessions allow e-commerce firms to sell through a retailer's online platform, while keeping control over price, discounts, branding activities, and product assortment.
Richemont’s business operations include Cartier, Montblanc, Panerai, Dunhill and Jaeger-LeCoultre.