Farfetch deal gets green light from competition regulator
The U.K. Competition and Markets Authority (CMA) has approved the deal between Yoox Net-a-porter Group and Farfetch, and said it has no further plans to investigate.
Richemont, the luxury goods group, agreed to sell its 47.5 per cent stake in the online fashion retailer last year in a deal that valued the business at about £880 million.
The watchdog had earlier this year launched a preliminary probe into whether the merger might lessen competition in any U.K. markets.
British-Portuguese luxury e-commerce firm Farfetch last year agreed a deal to take a stake in peer YNAP, with the option of taking all remaining shares after five years, as Richemont looks to concentrate on its core luxury houses.
Richemont, which in return will receive a minority interest in Farfetch, said at the time the deal was struck that the it should go through by the end of 2023, pending antitrust approvals.
Commenting on the decision, Farfetch said: “We welcome the CMA’s decision and continue to work closely with regulators in other jurisdictions where approvals are required.”
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