eBay Classifieds Group Sale to Adevinta ASA Beneath Investigation by UK Watchdog

eBay’s sale of its eBay Classifieds Group to Norway’s Adevinta ASA is below risk from the British authorities’s Competitors and Markets Authority (CMA) after the watchdog initiated an investigation into the proposed merger of the eBay Classifieds Group into Adevinta.

Adevinta ASA is lively within the UK by means of its on-line categorized promoting platforms Shpock, Agriaffaires, MachineryZone and Truckscorner. eBay Classifieds Group is lively within the UK by means of its on-line categorized promoting platforms, Gumtree and Motors.co.uk. Along with eBay Classifieds Group, eBay Inc. is the proprietor of eBay Market.

CMA Assertion

In the summertime, eBay introduced it had agreed to promote its Classifieds Group to Adevinta ASA for a complete thought of worth of $9.2 billion. The deal included money and inventory with eBay receiving $2.5 billion in money and roughly 540 million of Adevinta shares. After the sale accomplished, eBay was going to turn into the biggest shareholder in Adeventia with about 44 p.c of the excellent shares. However with this investigation by the CMA, the deal may doubtlessly unravel or require important modifications.

Second Main eBay Sale That Faces Scrutiny by CMA

The CMA additionally investigated the sale of StubHub to Viagago (Pug LLC) and provisionally discovered that the finished merger between the 2 firms may cut back competitors. In November, Pug LLC filed a Discover of Attainable Treatments in response to the CMA’s provisional discovering, successfully difficult many of the raised points.

eBay had bought StubHub in November 2019 and whereas the CMA introduced its investigation into the StubHub/Viagago merger earlier than the sale closed, the watchdog allowed the sale to finish.

Nonetheless, the merger inquiry into the eBay Classifieds Group’s sale to Adevinta ASA doesn’t embody particular language that the sale could possibly be closed, presumably which means the sale is on maintain till the investigation by the CMA is accomplished.

The CMA has set February 16, 2021 as its deadline to announce its determination whether or not to refer the merger for a Part 2 investigation. The watchdog did warn the deadline “might change in the course of the merger evaluation course of because of completely different causes.”

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