According to Reuters, the two companies plan to create a Chinese joint venture. Besides, Cartier-owner Richemont, which partnered with Alibaba to create mobile applications, is also considering investing in Farfetch alongside the company. Moreover, after the announcement, Farfetch's shares jumped about 16% to USD 32.59.
Farfetch, which counts Alibaba's competitors JD.com and Tencent Holdings among its investors, has been betting on China's burgeoning online luxury goods world, as China-based consumers make up a third of luxury goods purchases worldwide.
However, the terms of the current and past deals with Tencent and JD would not prevent Alibaba from investing in Farfetch, Reuters reported.
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