UK Competition Watchdog Ratifies $9.2B eBay Classified Ads Business Merger with Adevinta: FT
The U.K. Competition and Markets Authority (CMA) approved eBay Inc's (NASDAQ: EBAY) $9.2 billion classified advertisements merger deal with Norway's Adevinta after the companies agreed to sell the U.K. second-hand sales sites, Gumtree U.K. and Shpock, the Financial Times reports.
The CMA had raised antitrust concerns in Feb. 2021 over eBay's dominance following the deal rendering Facebook Inc's (NASDAQ: FB) Marketplace as the only significant rival.
The U.K. businesses would have represented less than 5% of the combined group if the deal had gone ahead as planned.
eBay agreed to the merger in July 2020 following pressure to trim down eBay's classified ads business. The business included Gumtree and Canada's Kijiji, along with vehicle marketplace sites in Denmark, Germany, Italy, and the U.K.
Adevinta is expected to complete the eBay Classifieds Group acquisition by Q2 2021, subject to Austria's regulatory approval.
Liechtenstein's investment group and online marketplace operator RussMedia Equity Partners had agreed to acquire Shpock. Gumtree U.K. is still waiting for a prospective buyer.
Price action: EBAY shares are up 0.26% at $61.53 on the last check Wednesday.
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