Richemont seals takeover of Yoox Net-A-Porter by Mytheresa

After lengthy negotiations, Richemont has reached an agreement to transfer its loss-making online business Yoox Net-A-Porter (YNAP) to the German e-commerce company Mytheresa. Instead of a cash transaction, Richemont will receive a 33% stake in Mytheresa. This strategy follows the failed attempt to sell YNAP to competitor Farfetch, whose share price had previously plummeted significantly due to ongoing losses. The deal will allow Mytheresa to take over YNAP's liquid assets of 555 million euros, as well as a credit line of 100 million euros. This transaction, which does not require shareholder approval, is expected to be completed in the first half of 2025. Richemont plans to record an additional impairment charge of 1.3 billion euros for YNAP. This highlights the challenge faced by the Cartier parent company in its attempt to transform the online sale of luxury brands. Upon completion, Richemont's stake will be subject to a one-year holding period, allowing the company to maintain a degree of influence in the online luxury goods market, albeit without exercising operational control. Mytheresa, whose American depositary receipts are traded in New York, currently has a market capitalization of approximately 368 million dollars.