Tue, 03 Aug 2021

OSLO, Norway: U.S. e-commerce group eBay and Adevinta of Norway have received permission to work jointly in selling global classified advertising, Adevinta said on Friday.

Under a 2020 agreement, Adevinta will acquire eBay's Classifieds Group at a cost of $2.5 billion in cash and 540 million shares, valuing the transaction at some $13 billion.

Final regulatory approval has arrived from the Austrian competition watchdog after eBay reduced its ownership stake in Adevinta during the next 18 months, the Norwegian firm said.

The final details were worked out, following a go-ahead from Britain's Competition and Markets Authority earlier this month.

"Adevinta is pleased to announce that closing of the transaction will be initiated shortly and is expected to be completed on or about 25 June," the company said in a statement.

The joint agreement will result in Adevinta becoming the largest shareholder in eBay, with an overall 44 percent stake and 33.3 percent of shareholder votes, and gives eBay two seats on the Norwegian company's board.

But as part of the agreement negotiated with Austria's Federal Competition Authority, eBay must reduce its financial interest in Adevinta to no more than 33 percent within 18 months of the transaction's closing, Adevinta said.

"The remedies proposed by Adevinta and eBay address the FCA's concern that the transaction could potentially lessen competition in the Austrian market," the company said.

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