US-based e-commerce company Coupang, Inc. (NYSE:CPNG) on December 18, 2023 said it plans to take over Farfetch Limited (OTCPK:FTCH.F) in a deal that will give the troubled UK online luxury fashion retailer with access to USD 500 million (EUR 458 million) of capital. Trading in Farfetch shares was suspended on December 18, 2023, whereas Coupang's shares closed down 5% at USD 16.15 on December 18, 2023 in New York. The acquisition is expected to make Coupang a leading player in the USD 400 billion global personal luxury goods segment.
In addition, it will unlock Farfetch?s value in the South Korean market, where Coupang also operates, the buyer said. ?Coupang?s proven track record and deep experience in revolutionizing commerce will enable us to deliver exceptional service for our brand and boutique partners, as well as for our millions of customers around the world,? said Jose Neves, Farfetch Founder, Chief Executive Officer and chairman.
US private equity firm Greenoaks (Greenoaks Capital Partners LLC) is also taking part in the investment alongside Coupang, according to the statement.