Coupang, the “South Korean Amazon”, buys Farfetch for 456 million euros

Farfetch has found a savior to prevent bankruptcy. Coupang, one of the world’s largest retail companies listed on the New York Stock Exchange, has signed an agreement Agreement to purchase Farfetch Holdings’ business and assets for $500 million (approximately €456 million).

Specifically, as the South Korean company reported in a statement, the agreement is “will strengthen its position in the global luxury market«, worth 400,000 million dollars (around 364,917 million euros). The investment company Greenoaks also contributed a post «important financial experience» for the operation and is the Coupang’s investment partner in this acquisition.

The operation saves Farfetch from bankruptcy, but also implies its bankruptcy Exit from the stock market from New York five years after its stock market debut. Furthermore, as they reported from Richemont, sThe agreement to sell the shares of the Swiss conglomerate has been cancelled -previously one of the main shareholders of Farfetch- in Yoox Net-a-Porter (YNAP)the main competitor of the luxury market.

Despite the consent of the European Commission (EC)This agreement has raised many doubts, especially due to the financial difficulties Farfetch has suffered as a result The value of its shares has fallen by 90% in recent years, with a market capitalization that has increased from $26,000 million (around €23,680 million) to just over $1,000 million (around €911 million). In fact, recently Richemont said there are no plans to borrow or invest in Farfetch.. The purchase by Coupang now gives Farfetch access to 500 million in capital to “We continue to provide exclusive brands and boutiques with cutting-edge, tailored technology and provide consumers around the world with access to leading designers«.

«Farfetch is a landmark in the luxury landscape and has been a transformative force proving that online luxury is the future of luxury retail.“he explained in the press release Bom Kim, founder and CEO of Coupangmaking sure “Farfetch will refocus on delivering the highest quality experience to the world’s most exclusive brands, while pursuing continued and thoughtful growth as a private company«. «We also see tremendous opportunity to redefine the customer experience for luxury customers around the world.«added the CEO of the Korean company.

Read Also:  Is Following Bitcoin Whales a Waste of Time?

For his part, Jose Neves, Founder and CEO of Farfetchhas emphasized that “Coupang’s proven track record and extensive experience in revolutionizing commerce will enable us to provide exceptional service to our brand and boutique partners, as well as our customers around the world.«. «We are excited to partner with such a respected company that is committed to investing in innovations that transform every aspect of the Farfetch customer experience.‘ he assured. José Neves founded Farfetch 15 years ago and currently maintains a 15% of the company capital and 77% of the voting rights. From now on, Coupang will control 100% of the company, but Neves will remain with the company and will be the sole board member.

Farfetch It debuted on the stock exchange in 2018 and was valued at 23,000 million dollars (around 20,942 million euros), backed by prominent investors such as Chinese Alibaba Group. The company posted losses in the final quarter of 2022 and has posted negative results this year. end of November has suspended the presentation of its third quarter financial results.

Who is Coupang?

Better known as the “South Korean Amazon,” Coupang is the leading marketplace in South Korea, one of the largest e-commerce marketplaces in the world. Included in the list Fortune 200the company Listed on Wall Street since 2021. Illuminated in 2010 by Bon KimLike Amazon, Coupang has built an impressive logistics network: it delivers orders received before midnight to dawn for free. It also has a payment unit, Coupon Pay; a delivery business to restaurants Coupang eatsas well as video streaming Coupang game. Currently the Korean giant is based in the United Stateswith operations and support services in markets such as South Korea, Taiwan, Singapore, China and India.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here