Farfetch Acquisition of Net-A-Porter

Farfetch Acquisition of Net-A-Porter

On Wednesday, it was announced that Farfetch had completed the deal to acquire Net A Porter, a subsidiary of the Swiss Richemont Group. Farfetch becomes the owner of 47.5% of the shares of the YOOX Net A Porter Group, reducing the value of 2.7 billion euros from the value of the original deal, The Mohamed Al-Abbar Group of Companies also acquired 3.2% of the YOOX Net-A-Porter Group during this big deal.

Today in this news, we will review a set of points and the implications of the purchase of Farfetch for the YOOX Net A Porter Group, which includes YOOX, Net-A-Porter, Mr. Porter and The Outnet, through the following points:

• About the Farfetch
• Information about the Richemont Group
• The reason for the reduction of 2.7 billion euros on the deal
• Shares of companies affected after the success of the deal
• The reason why Farfetch is interested in the success of the deal
• The Consequences of Farfetch's Acquisition of YOOX Net A Porter
• The effect of this deal on medium and small brands

All you need to know about Farfetch?

Farfetch is one of the most famous sites for selling international brands in the world, especially in the Gulf region and the Arab world, because it includes more than 1,000 luxury brands that are interested in providing the latest versions for online shoppers, as Farfetch has great experience in managing trade operations. A multi-brand electronic platform for the development it has gained since its founding in 2008, with its market value exceeding $3.7 billion.

Brief information about the Richemont Group

The Richemont Group was founded in 1988 and is headquartered in Switzerland, to reach the sixth place as the largest company in terms of market value in the Swiss market index and the third largest luxury goods company in the world, especially when you know that it owns a large group of brands specialized in the manufacture of watches and fashion products And fashion, in addition to websites selling the most luxurious brands and more other commercial activities.

What is the reason for the €2.7 billion cut on Farfitch's acquisition of YOOX Net A Porter?

There are many real reasons for Farfetch to reduce the 2.7 billion euros, the most prominent of which is the difference in the book value of this investment to the fair value, the losses achieved by the Yoxneta Butter Group and the difference in the value of the euro with the dollar, in addition to other key points for this reduction, which are the costs of selling and completing The high bargain.

How were Farfetch and Richemont shares affected after the deal?

Immediately after the successful completion of the transaction and Farfetch's acquisition of Richemont's Yokes Net-Porter Group of Companies, Farfetch's stock increased by 24%, while Richemont's stock also gained 3.5%.

The reason why Farfetch is interested in the success of the deal

The e-commerce sites of the YOOX Net Porter Group are considered one of the biggest competitors to Farfetch, so acquiring this group will certainly contribute to strengthening the dominance and control of Farfetch on the market.
Farfetch realizes that the average age of its customers is 35 years, while the customers of the YOOX Net A Porter Group websites are different depending on the site, so Farfetch will benefit from the list of customers and brands provided by these sites, which includes a greater expansion and meet all the needs of online shoppers and provide wider choices Instead of limiting options to them, all this will surely increase market share and success which is reflected in greater revenue.

What is the impact of Farfetch's acquisition of YOOX Net A Porter?

The first thing that will be done is the appointment of a new, efficient and creative CEO with a board of directors specialized in this field, this matter will be taken upon by Farfetch for its great experience in managing e-commerce operations for sites that sell multiple international brands, where Farfetch is considered the strongest in earning customer loyalty.
Farfetch emphasized maintaining the personal character of each site; With the provision of advertising solutions for brands, all of this will be linked with Farfetch as an electronic franchise partner.
This acquisition will contribute to accelerating the expansion and concentration in the Chinese markets, Asia Pacific and the Middle East.

How does buying YOOX Net A Porter from Farfetch affect mid and small-sized brands?

This news is very positive for all small and medium brands that want to increase their sales around the world, because they will benefit from Farfetch's great capabilities in achieving the highest sales thanks to the diverse audience that it is working to target in addition to the different sales methods and distinguished services.