Richemont’s $1.1 Billion Global Strategic Partnership with Alibaba Group and Farfetch

On November 5, 2020, Farfetch, Alibaba Group (“Alibaba”), and Richemont announced a global strategic partnership to provide luxury brands with enhanced access to the China market as well as accelerate the digitization of the global luxury industry. As part of the global partnership, Alibaba and Richemont will invest $600 million ($300 million each) in private convertible notes issued by Farfetch Limited. Alibaba and Richemont will also invest $500 million ($250 million each) in Farfetch China, taking a combined 25% stake in a new joint venture which will include Farfetch’s marketplace operations in the China region. Alibaba and Richemont have an option to purchase a further combined 24% of Farfetch China after the third year of the joint venture’s formation. Cravath is acting as U.S. counsel to Richemont.

The Cravath team is led by partners George A. Stephanakis, Nicholas A. Dorsey and Andrew J. Pitts and includes associates Norman J. Walczak, Saagar Kaul and Henri R. Simonet on U.S. corporate matters; and partner Christopher K. Fargo and associates Andrew T. Davis and Cecily Xi on U.S. tax matters.