In this paper, we find the fusion rules for the free wreath product quantum groups for all compact matrix quantum groups of Kac type and . This is based on a combinatorial description of the intertwiner spaces between certain generating representations of . The combinatorial properties of the intertwiner spaces in then allows us to obtain several probabilistic applications. We then prove the monoidal equivalence between and a compact quantum group whose dual is a discrete quantum subgroup of the free product , for some . We obtain as a corollary certain stability results for the operator algebras associated with the free wreath products of quantum groups such as Haagerup property, weak amenability and exactness.

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