Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
Sale ends in
$0.99
per week for 24 weeks
Welcome to
super saver spring
$0.99
per week for 24 weeks
save over $140
// //

Britain’s competition watchdog on Tuesday raised concerns over Adevinta’s planned acquisition of U.S. e-commerce group eBay’s classified ads business, sending the Norwegian company’s shares down 4.3%.

The $9.2 billion 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.

Story continues below advertisement

“This could reduce consumer choice, increase fees or lower innovation in the supply of platforms that allow people to buy and sell goods online.”

U.S. 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% voting stake in Adevinta and positions on the Adevinta board, the CMA also noted.

Britain accounted for less than 10% of the consolidated revenue of eBay’s classifieds business and 1% of Adevinta’s consolidated revenue, Adevinta said.

In the latest CMA merger investigation involving large digital companies, the watchdog said it is “thoroughly examining deals to ensure that competition is not restricted and consumers’ interests are protected”.

The CMA this month said Viagogo must sell StubHub’s international business after its $4.05 billion purchase of eBay’s ticket-reselling business.

Adevinta and eBay will together propose legally binding solutions to resolve the regulator’s concerns before the deadline of Feb. 23, Adevinta said.

Story continues below advertisement

The CMA would then have five working days to consider whether to accept the companies’ proposals or to refer the deal for an in-depth investigation.

Adevinta shares were down 4.3% at 1121 GMT, lagging a flat Oslo benchmark index.

The company said it would provide a further update in early March after the CMA’s decision.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies