Farfetch deal for Yoox Net-A-Porter stake probed by CMA

Last year, luxury goods giant Richemont agreed to sell its 47.5% stake in Yoox Net-A-Porter to fellow online fashion platform Farfetch.

A mobile phone with the Farfetch app open on screen (Alamy/PA)

The UK competition regulator has said it will probe Farfetch’s deal to buy a stake in online retail business Yoox Net-A-Porter.

Last year, luxury goods giant Richemont agreed to sell its 47.5% stake in Yoox Net-A-Porter to fellow online fashion platform Farfetch.

Richemont secured a minority interest of around 12% to 13% of Farfetch, as well as agreeing to use the platform for Richemont brands.

It is understood the deal valued Yoox Net-A-Porter at around one billion euros (£880 million), below previous estimates.

The Competition and Markets Authority (CMA) said on Tuesday that it is now examining whether the deal amounts to a merger.

It said it will then therefore assess whether this deal “may lead to a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.

The CMA appealed to other parties to comment on the process before a deadline of February 14.

Richemont has also agreed to sell a further 3.2% stake to Dubai Mall developer Mohamed Alabbar via his Symphony Global operation.

At the time of the deal, Richemont’s chairman, Johann Rupert, said it would be a step towards his ambition of building an “independent neutral online platform for the luxury industry”.