Richemont's YNAP Deal With Farfetch Probed by UK Regulator
By Joshua Kirby
Compagnie Financiere Richemont SA's sale of a stake in online platform Yoox Net-A-Porter to Farfetch Ltd. is to be studied for competition issues by the U.K. market watchdog, which is inviting comments on the planned deal.
Switzerland's Richemont and British-Portuguese luxury online marketplace Farfetch last August reached a deal under which Farfetch will take a stake of a little under 50% in YNAP in return for a minority interest of around 12%-13% in its own shares, as well as use of its platform by Richemont's brands.
The U.K.'s Competition and Markets Authority is now looking at whether the deal amounts to a merger, and if so, whether that merger could lessen competition in any markets in the U.K., it said Tuesday. The CMA said it invites comment from any interested party, with a deadline of Feb. 14.
Richemont said at the time the deal was struck that it expected the divestiture to go ahead by the end of 2023, pending antitrust approvals. The agreement also allows for Farfetch to acquire all remaining shares in YNAP for up to five years after the closure of the transaction.
Write to Joshua Kirby at email@example.com; @joshualeokirby
(END) Dow Jones Newswires
January 31, 2023 02:34 ET (07:34 GMT)Copyright (c) 2023 Dow Jones & Company, Inc.