Global retail group Richemont has confirmed that its luxury fashion e-tail subsidiary Net-a-Porter is to join forces with Italian online fashion house Yoox.

Essential Retail reported news of the talks on Monday, and the decision to merge puts to an end to speculation that Amazon was in the running to acquire Net-a-Porter.

Natalie Massenet, founder of Net-a-Porter, will serve as executive chairman of the combined entity, while her counterpart at Yoox, Federico Marchetti, will assume the role of CEO.

Yoox Net-A-Porter Group, as the company will be known, will continue to be incorporated in Italy and listed on Borsa Italiana. Richemont will receive, in aggregate, on a fully diluted basis 50% of the share capital of the combined entity's listed parent company.

Commenting on the deal, Richemont chairman Johann Rupert referenced the changing retail landscape and power held by the largest global technology companies as validation for the merger.

"It is with this in mind that we believe it is important to increase leadership and size to protect the uniqueness of the luxury industry," he explained.

"The merger of the two leaders will further enhance an independent, neutral platform for a sophisticated clientele looking for luxury brands."

Yoox runs multi-brand online stores such as yoox.com, thecorner.com and shoescribe.com, as well as a variety of mono-brand online stores.

The transaction is expected to be completed in September 2015, after shareholder and regulatory approval has been gained.

Rupert added: "Richemont has been a pioneer in luxury eCommerce, first as a minority shareholder of Net-a-Porter in its infancy and then as a controlling shareholder since 2010.

"We are proud of Net-a-Porter's achievements under the leadership of Natalie Massenet, ably assisted by a wonderful team of professionals."