view eBay Inc eBay and Adevinta to advance classifieds deal as Shpock, Gumtree and Motors.co.uk are put up for sale
Shpock, Gumtree and Motors.co.uk account for less than 5% of the combined businesses, and, have to be jettisoned to satisfy competition regulators. image credit: Mykolastock / Shutterstock.
Three UK website businesses will be cast off to assuage regulators and enable eBay’s US$9.2bn transaction with Adevinta.
Classified ads sites Shpock, Gumtree and Motors.co.uk will be put up for sale as a response to concerns raised last month by Britain’s Competition and Markets Authority (CMA).
These three businesses would represent less than 5% of the enlarged company’s consolidated revenues, eBay and Adevinta said in a joint statement.
Adevinta agreed in July to pay US$2.5bn in cash and 540mln shares to acquire eBay’s classified ads business.
The deal, which is slated to close in the second quarter of 2021, will see eBay as Adevinta’s largest shareholder with 44% ownership and 33% of the company’s voting shares. The online auction group will take two seats on Adevinta’s board.
Before the transaction, Adevinta owns more than 30 online classified sites across 11 different countries – including Shpock, France’s Leboncoin, and OLX Brazil.
The eBay Classifieds Group meanwhile comprises the Autotrader (Australia) websites and brand along with Gumtree, and other leading classifieds websites in the Netherlands, Belgium, Germany, and Mexico.
In Paris, Adevinta ASA stock rose by 3.42% to trade at €12.10 whilst eBay was indicated higher, marked at US$58.48 per share in the premarket. Quick facts: eBay Inc

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