eBay, an e-commerce group from the U.S. along with Adevinta of Norway have decided to sell out “three smaller British units” in an attempt to receive “regulatory approval” for a tie-up of “their global classified ads businesses” which were being planned for a long time. The CMA, Competition and Markets Authority, of Britain, had told last month that both the companies would have to mitigate the concerns raised by the watchdogs prior to moving ahead with the “$9.2 billion deal”.
It is in response to the same that both the companies informed about proposing to “sell each company’s primary classifieds operations in Britain, namely Shpock, Gumtree and Motors.co.uk”, added Reuters. While Reuters also quoted CMA saying that the said move “may address the competition concerns our investigation raised”.
Both together, the British business would account for “less than 5% of total consolidated revenue for the merged classified ads company”. Last July, however, a deal was made whereby Adevinta is suppose to get “eBay’s classified ads business in return for $2.5 billion in cash and 540 million shares” which will make the latter the “largest shareholder” of the former with “a 44% stake and 33.3% of the vote”, while under the same arrangements, eBay is to also occupy “two seats on Adevinta’s board”.
Furthermore, Reuters added:
“The CMA’s review of the eBay-Adevinta deal is the latest probe of large digital mergers. The CMA said last month Viagogo must sell StubHub’s international business after its $4.05 billion purchase of eBay’s ticket-reselling business”.
Both the companies informed that they want to end the transaction within the Q2 of 2021 provided the CMA gives the “final ratification” and Austria clears “regulatory approval”.
References:
reuters.com
It is in response to the same that both the companies informed about proposing to “sell each company’s primary classifieds operations in Britain, namely Shpock, Gumtree and Motors.co.uk”, added Reuters. While Reuters also quoted CMA saying that the said move “may address the competition concerns our investigation raised”.
Both together, the British business would account for “less than 5% of total consolidated revenue for the merged classified ads company”. Last July, however, a deal was made whereby Adevinta is suppose to get “eBay’s classified ads business in return for $2.5 billion in cash and 540 million shares” which will make the latter the “largest shareholder” of the former with “a 44% stake and 33.3% of the vote”, while under the same arrangements, eBay is to also occupy “two seats on Adevinta’s board”.
Furthermore, Reuters added:
“The CMA’s review of the eBay-Adevinta deal is the latest probe of large digital mergers. The CMA said last month Viagogo must sell StubHub’s international business after its $4.05 billion purchase of eBay’s ticket-reselling business”.
Both the companies informed that they want to end the transaction within the Q2 of 2021 provided the CMA gives the “final ratification” and Austria clears “regulatory approval”.
References:
reuters.com
