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In a statement on Tuesday, Norwegian classifieds company Adevinta writes that the British competition authorities (CMA) have expressed concern that Adevinta’s proposed acquisition of Ebay subsidiary Ebay Classifieds Group could weaken competition in the UK. United.
This happens after the competition authorities have undergone a so-called phase 1 review.
“Adevinta and Ebay do not agree with CMA’s rationale, but will work constructively with CMA and are confident of finding a suitable solution,” the company said in a statement.
The two parties will now propose legally binding solutions to resolve concerns that competition authorities may have before the deadline of February 23, 2021.
Thereafter, the CMA will have five business days to accept this solution or proceed with a more thorough investigation. Adevinta will update the market in early March.
Agreement worth 80 billion.
Online classifieds company Adevinta, controlled by the Schibsted media group, came in last summer with the news that it is buying Ebay’s classifieds business in a deal worth more than NOK 80 billion.
That day, the share price rose 26 percent.
After rising more than 60 percent since listing in April 2019, Adevinta has become the seventh largest company on the Oslo Stock Exchange.
Obtains 44 percent of the shares
Under the deal, Ebay will receive 44 percent of the shares in the “new” Adevinta, while Schibsted will retain a larger share of voting rights at general meetings. Adevinta has announced that it expects the acquisition to be completed during the first quarter of this year, but has depended on approval from competition authorities in various markets.
EBay’s classifieds business includes Gumtree, which has a strong position in the UK.
Then there is the car sales service Motors.co.uk, the UK’s leading car salesman.
On Adevinta’s side, the former challenger of Tise Shpock is on the British market.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content can only be done with written permission or as permitted by law. For more terms, see here.
