eBay-Adevinta Deal: UK Watchdog Voices Concern Over $9.2-Billion Acquisition
Britain’s competition watchdog on Tuesday raised concerns over Adevinta’s planned acquisition of US e-commerce group eBay’s classified advertisements business, sending the Norwegian company’s shares down 4.3 percent.
The $9.2 billion (roughly Rs. 67,040 crores) deal announced in July would create the world’s largest classifieds group, but Adevinta and eBay must first resolve the Competition and Markets Authority’s concerns (CMA) to proceed with the takeover.
“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,” the CMA 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.”
US group eBay owns UK online auction sites Gumtree and ebay.co.uk while Adevinta owns Shpock.
With the sale of its classifieds business, eBay will acquire a 33.3 percent voting stake in Adevinta and positions on the Adevinta board, the CMA also noted.
