Italian online fashion company Yoox and London-based Net-a-Porter have agreed to a merger, creating a combined group which will generate joint net revenues of EU1.3 billion (£950 million).

Net-a-Porter, who is owned by the Swiss luxury group Richemont, will still have 50% of the shares, however they will only have 25% of the voting rights with the new merger. Heading up the new company is Federico Marchetti, founder of Yoox.

Natalie Massanet, who founded Net-a-Porter in 2000, will take on the role of executive chairman at the new group, whilst the founder of Yoox, Federico Marchetti, will be the chief executive.