eBay Inc., the San Jose, California-headquartered e-commerce company mostly focused on C2C and B2C consumer sales, alongside Norway’s Adevinta had received a final regulatory nod for their tie-up on global classified ads businesses, which in effect would create the world’s largest classified ads group as Austrian competition authority had sent a greenlight on the deal, Adevinta had said in a statement on Friday.
In point of fact, according to a deal that Adevinta had cut with eBay Inc last year, the Norwegian firm would takeover eBay’s Classified Group for $2.5 billion in cash alongside 540 million eBay shares, valuing the entity at roughly $13 billion as of Thursday’s closing price.
Alongside this, Austrian regulators had sent a final regulatory approval for the merger between Adevinta and eBay’s Classified Group as beforementioned as eBay had agreed to trim its stake in Adevinta no more than 33 per cent over the next 18 months, the Norwegian firm had added.
Aside from that, the latest go-ahead signal from Austrian regulators followed a regulatory approval from Britain’s Competition and Market Authority earlier this month that reportedly had rubbed out a key hurdle for the deal.
Adevinta, eBay receive final approval for $13bn classified ad tie-up
On top of that, under the financial terms of the deal struck last year, eBay Inc would become the Norwegian firm’s largest stakeholder with an overall stake of 44 per cent alongside a 33.3 per cent of the votes, which in effect had provided the Californian e-commerce giant with two seats on the merged entity’s management board.
Meanwhile, addressing an out-and-out optimism over the deal, Oslo-based Adevinta said in a statement, “Adevinta is pleased to announce that closing of the transaction will be initiated shortly and is expected to complete on or about 25 June. ”