Watchdog clears Ebay’s $9.2bn classified ads deal with Adevinta
The competition watchdog has cleared Ebay’s $9.2bn (£6.5bn) sale of its classified ads business to Norwegian rival Adevinta.
In March the two companies said they would sell off three British divisions to secure regulatory approval for the tie-up.
Adevinta said it will divest Shpock, while US ecommerce giant Ebay will sell Gumtree and Motors.co.uk.
The Competition and Markets Authority (CMA) said it accepted the undertakings and would not refer the deal for further investigation.
The sale will see Ebay acquire a 33.3 per cent voting stake in Adevinta and positions on the board. This sparked concerns Ebay would be able to influence the business strategy for both Gumtree and Shpock.
In its Phase 1 investigation the CMA said it was concerned of a loss of competition between Shpock, Gumtree and Ebay’s marketplace, leaving only Facebook Marketplace as a significant competitor.
But the sale of the British businesses means the deal can go ahead and paves the way for the creation of the world’s largest classified ads group.
Adevinta welcomed the decision and said it was aiming to complete the acquisition in the second quarter.