Late last night, eBay issued a statement regarding the sale of its eBay Classifieds Group to Adevinta and the proposal they are offering to satisfy the objections raised by the UK Competition and Markets Authority (CMA) about the sale.
“eBay can confirm that the UK Competition and Markets Authority (CMA) has announced that it considers there are reasonable grounds to believe the remedies presented by eBay and Adevinta address their concerns with respect to the proposed transaction between eBay and Adevinta.“
“The remedies proposed by eBay and Adevinta are the divestment of each company’s primary classifieds operations in the UK: Shpock, Gumtree (UK) and Motors.co.uk. These remedies have been proposed in response to the competition concerns raised by the CMA on February 16, 2021.”
The CMA also issued a statement this morning stating the following:
“Adevinta ASA and eBay Inc. offered undertakings to the CMA, which involve divesting Adevinta’s Shpock and eBay’s UK Gumtree business (including Motors.co.uk). The CMA considers that there are reasonable grounds for believing that the undertakings offered by Adevinta and eBay, or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002. The full text of this decision will be published shortly.”
In a nutshell, eBay will have to sell the Gumtree business, which includes the recently aquired Motors.co.uk, and Adevinta will sell its shpock unit, which will also be subject to regulatory approval in Austria.
Subject to final ratifications of the remedies execution plan by the CMA and the aforementioned receipt of the regulatory approval in Austria, both companies target the closing of the eBay Classifieds Group transaction in the second quarter of 2021.
There was no mention of how, if at all, this proposed remedy will affect the final transaction price of the eBay Classifieds Group sale to Adevinta.
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