Asos’s largest shareholder Bestseller owner Anders Holch Povlsen is to take a 10% stake in rival online player Zalando.

Holch Povlsen, whose Bestseller empire includes Jack & Jones and Vero Moda, will buy shares from several early-stage shareholders of the German-based etailer such as European Founders Fund, Holtzbrinck and Tengelmann.

Bestseller, who has long been touted to eventually take over Asos, holds around 27% of the UK etailer’s shares.

Zalando co-founder and managing director David Schneider said: “Bestseller and Zalando have been working together very successfully for several years. Anders Holch Povlsen has been following Zalando’s development very closely and he knows our strengths. To partner up with such an experienced fashion entrepreneur is amazing for us.”

Zalando managing director Rubin Ritter added: “This is an important step in the strategic development of our shareholder structure. Anders Holch Povlsen will be a strong and long-term-oriented shareholder and together we want to design the future of fashion e-commerce.”

Zalando, which was founded in 2008, reached break-even in its core markets of Germany, Austria and Switzerland, last year as total sales hit €1.15bn over the year.

In the first quarter of 2013, sales soared 74% to €372m at the site, which has 15 million customers.