In a groundbreaking development for the luxury industry, Swiss luxury goods conglomerate Richemont, led by South African billionaire Johann Rupert, and the British-Portuguese online luxury clothing retailer Farfetch, have obtained unconditional antitrust clearance from the European Commission (EC) for their ambitious partnership.
This partnership involves Farfetch’s acquisition of a substantial 47.5 percent stake in Yoox Net-a-Porter (YNAP), marking a significant step towards digitalizing the luxury sector.
This strategic alliance, set in motion over a year ago, seeks to usher in a new era of digitization within the luxury industry. The EC’s approval stands as the final regulatory hurdle for this collaboration. Richemont, under Rupert, has opted to divest a 50.7-percent stake in YNAP as part of the agreement.
As a part of the transaction, Farfetch will acquire a 47.5-percent interest in YNAP. Symphony Global, an investment vehicle linked to Emirati tycoon Mohamed Alabbar, will acquire 3.2 percent of YNAP in a parallel move. This arrangement will transform YNAP into a neutral online platform within the luxury industry, enhancing competition and market dynamics.
At the core of this partnership lies the adoption of Farfetch Platform Solutions by YNAP and the Richemont Maisons.
Furthermore, the Richemont Maisons are poised to launch e-concessions on the FARFETCH Marketplace, promising an enriched digital shopping experience for luxury consumers.
Rupert, who serves as Richemont’s chairman, holds a substantial interest in the company through Compagnie Financiere Rupert.
As of March 31, 2023, his stake comprises 6,263,000 Richemont “A” shares and 522,000,000 Richemont “B” shares, collectively representing 10.18 percent of the firm’s capital and a majority of 51 percent of its voting rights, solidifying his position as a key influencer in Richemont’s strategic decisions.
