OSLO – British antitrust authorities yesterday expressed concern about Norwegian online classified ad specialist Adevinta’s planned acquisition of some eBay assets, giving the two groups one week to find a solution.
In July 2020, Adevinta agreed to pay US$9.2 billion (RM37.08 billion) in cash and shares for part of eBay’s classified ad business, to create the largest player in the field.
In Britain, the transaction would see Shpock, owned by Adevinta, and Gumtree, until now controlled by eBay Classified Group, combined while eBay's marketplace, on ebay.co.uk, would remain the biggest platform in the country for classified ads.
But since the acquisition is to be paid partially in shares, the US company would also hold 33.3% of the voting rights in Adevinta and have seats on its board, thereby giving it influence over the Norwegian group’s decisions, Britain’s Competition and Market Authority (CMA) said.
“The CMA is concerned the merger could lead to a loss of competition between Shpock, Gumtree and eBay’s marketplace, with only Facebook Marketplace remaining as a significant competitor,” it said in a statement.
“This could reduce consumer choice, increase fees or lower innovation in the supply of platforms that allow people to buy and sell goods online,” it said.
The CMA gave both sides until February 23 to propose solutions addressing its concerns.
Adevinta and eBay said they disagreed with CMA’s reasoning but “will work constructively” with the regulator to find a solution.
In late morning trading on the Oslo stock exchange, the Adevinta share price was down 3.55% in an overall market up 0.26%. – AFP, February 16, 2021
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