What: The European Commission has given its approval to Farfetch's acquisition of a 47.5% stake in Yoox Net-a-porter (YNAP).

Why it is important: This partnership aims to accelerate the online presence of Richemont's brands and establishes YNAP as a neutral online platform for the luxury industry.

The deal, which was announced in August 2022, was also approved by the UK Competition and Markets Authority. The completion of the acquisition is still subject to certain conditions that Farfetch and Richemont, YNAP's parent company, are working towards fulfilling. Richemont plans to sell a majority stake in YNAP to Farfetch and Alabbar, its partner in the Middle East. After the deal is finalized, Richemont will hold a 49.3% stake in YNAP.

Farfetch is expected to acquire the entirety of YNAP over the next five years. In exchange, Richemont will receive Farfetch Class A ordinary shares, representing around 12 to 13% of Farfetch's issued share capital.

European Commission approves Farfetch acquisition of YNAP