// The CMA is looking at whether Richemont’s deal to offload most of YOOX Net-A-Porter to rival Farfetch could harm competition in the UK
// Richemont has been pushing since 2015 for a ‘neutral’ online marketplace for luxury brands
The UK’s Competition and Markets Authority (CMA) is investigating Farfetch’s plan to buy a stake in Yoox Net-A-Porter, owned by Swiss luxury group Richemont, which might reduce competition in this market.
Richemont, whose brands include Cartier and Montblanc, sold 51% of Yoox to London rival Farfetch and Dubai businessman Mohamed Alabbar back in August.
The plans would see the Yoox Net-A-Porter Group become 47.5% owned by Farfetch, while a further 3.2% stake would be taken by Alabbar.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Richemont chairman Johann Rupert said at the time that the deal would be a step towards his ambition of building an “independent neutral online platform for the luxury industry” that would attract both high-end brands and their customers.
Richemont said it will use Farfetch’s technology platform to advance the delivery of its omnichannel strategies for its brands, which will also join the Farfetch Marketplace.
The deal paved the way for its creation. But it will need approval from the CMA, which is investigating whether it amounts to a merger.
Click here to sign up to Retail Gazette‘s free daily email newsletter
