The UK’s Competition and Markets Authority (CMA) is currently conducting an investigation into the proposed acquisition of a stake in Yoox Net-A-Porter (YNAP) by Farfetch, a leading luxury fashion marketplace. YNAP, owned by Swiss luxury goods group Richemont, is an important player in the luxury e-commerce sector.
The CMA’s main concern is that this deal could potentially reduce competition in the UK market, which would have negative implications for both consumers and other businesses operating in the sector. Last year, Farfetch and Dubai businessman Mohamed Alabbar bought a 51% stake in YNAP from Richemont, with Farfetch’s intention being to acquire 47.5% and Alabbar acquiring 3.2%. The aim was to establish YNAP as a neutral platform with no controlling shareholder. However, Farfetch also has an option to buy the remaining stake in YNAP.
The CMA’s investigation is focused on determining whether this transaction would create a relevant merger situation under the Enterprise Act 2002, and if it would lead to a substantial reduction in competition in any of the UK markets for goods or services. In order to gather information and opinions on the matter, the CMA has invited interested parties to submit their comments on the potential impact of the deal.
On the other hand, Richemont’s chairman, Johann Rupert, believes that this acquisition would contribute to the creation of an independent and neutral online platform for the luxury industry, which would attract both luxury brands and customers. Richemont also has plans to leverage Farfetch’s advanced technology platform to enhance its own omnichannel strategies for its brands. These brands, including renowned names like Cartier and Montblanc, would also establish e-concessions on the Farfetch Marketplace.
The CMA’s investigation is crucial in ensuring that fair competition is maintained in the luxury e-commerce sector in the UK. By assessing the potential impact of this deal on the market, the investigation will provide valuable insights into the future of online luxury retail in the country.
Useful links:
– CMA investigation into Farfetch-Yoox Net-A-Porter merger
– Farfetch Investor Relations
