U.K.'s CMA Says Adevinta's Deal for EBay Classifieds Group Raises Concerns
February 16 2021 - 3:01AM
Dow Jones News
By Adria Calatayud
The U.K.'s Competition and Markets Authority said Tuesday that
Adevinta ASA's anticipated $9.2 billion acquisition of eBay
Classifieds Group from eBay Inc. raises competition concerns.
The antitrust watchdog said it is concerned that the deal could
lead to a loss of competition among Adevinta's Shpock, eBay
Classifieds Group's Gumtree and eBay's marketplace, which could
reduce consumer choice, increase fees or lower innovation.
The CMA said eBay will acquire a 33.3% voting stake in Adevinta
and positions on the Adevinta board as part of the deal, which
means that it could influence the business strategy for both
Gumtree and Shpock.
The companies now have until Feb. 23 to offer legally binding
solutions to address the CMA's concerns, the regulator said.
In response, Adevinta said that it and eBay don't agree with the
CMA's reasoning, but that they will work constructively with the
regulator and are confident in finding a suitable resolution.
Adevinta said eBay Classifieds Group's U.K. business accounted
for less than 10% of its revenue in 2019, and Adevinta's U.K.
business accounted for only 1% of its revenue.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
February 16, 2021 02:46 ET (07:46 GMT)
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