OSLO (NORWAY) – In an attempt to secure regulatory approval for a long-planned tie-up of their global classified ads businesses, U.S. e-commerce group eBay and Norway’s Adevinta have planned to sell three smaller British units. Adevinta and eBay said on Tuesday they had proposed to sell each company’s primary classifieds operations in Britain, namely Shpock, Gumtree and Motors.co.uk.
The announcement has been followed by Britain’s Competition and Markets Authority (CMA) asking the companies to resolve the watchdog’s concerns before proceeding with their $9.2 billion deal. The CMA’s review of the eBay-Adevinta deal is the latest probe of large digital mergers.
In response, CMA told the media that they may address the competition concerns if investigation raised. It said it had until April 29 to decide whether to accept the proposal and could extend that to June 28 if there were special reasons for doing so.
According to the deal made last July, Adevinta will acquire eBay’s classified ads business in return for $2.5 billion in cash and 540 million shares, making the U.S. firm Adevinta’s largest shareholder with a 44% stake and 33.3% of the vote. In return of which, eBay will also get two seats on Adevinta’s board. The companies have informed that they aim to close the deal in the second quarter of 2021.