- Austrian competition authority approves deal
- Companies will form the world’s leading classifieds group
- Transaction valued at $ 13 billion at the current share price
- eBay must reduce Adevinta’s stake to no more than 33%
OSLO, June 18 (Reuters) – US e-commerce group eBay (EBAY.O) and Norway’s Adevinta (ADEV.OL) have obtained final regulatory approval for a combination of their global classifieds business, announced on Friday Norwegian society. .
As part of a deal struck last year, Adevinta will acquire eBay’s classifieds group in exchange for $ 2.5 billion in cash and 540 million shares, valuing the deal at around $ 13 billion. dollars at current stock prices.
Final regulatory approval came from Austria’s competition watchdog after eBay agreed to reduce its stake in Adevinta over the next 18 months, the Norwegian company said.
The compromise removes the only obstacle to the deal after the UK’s Competition and Markets Authority gave the green light earlier this month. Read more
“Adevinta is pleased to announce that the closing of the transaction will be initiated shortly and is expected to close on or around June 25,” the Oslo-listed company said in a statement.
The transaction makes eBay Adevinta the largest shareholder with an overall stake of 44% and 33.3% of the votes, and gives the American company two seats on the company’s board of directors. Norway’s Schibsted (SBSTA.OL) will hold around 39.5% of the vote.
But under the deal with Austria’s Federal Competition Authority (FCA), eBay is to reduce its financial stake in Adevinta to no more than 33% within 18 months of the deal closing, Adevinta said.
“The remedies offered by Adevinta and eBay address FCA’s concern that the transaction could potentially reduce competition in the Austrian market,” the company said.
Adevinta shares were up 2.0% to NOK 165.7 at 9:17 a.m. GMT.
As part of the global deal, Schibsted will buy the Danish assets of eBay Classifieds Group from Adevinta for $ 330 million.
Report by Terje Solsvik, edited by Gwladys Fouché
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