Ebay agrees to sell $2.25 billion stake in Adevinta  to push through merger

Ebay has agreed to sell over $2 billion worth of stock in Shpock-owner Adevinta to help push through regulatory approval to combine its classified ads business.

Ebay’s complex tie-up with Norway’s ecommerce giant Adevinta could have an end in sight as it has agreed to sell a 10 per cent stake worth $2.25 billion to private equity firm Permira, clearing its final regulatory hurdle.

The sale is designed to appease Austria’s Federal Competition Authority, which has demanded that Ebay reduce its stake in Adevinta to no more than 33 per cent in order to avoid reducing competition in the sector.

Ebay’s offloading of 125 million shares will reduce its holding to 34 per cent, and Permira will be offers the chance to purchase an additional 10 million shares reducing its stake to the required 33 per cent.

“The transaction announced today with Permira provides a clear path to satisfying this commitment, while delivering value to eBay shareholders,” Ebay said.

The intricate deal, which will create the world’s largest online classified ads business, began in July 2020 when Adevinta agreed to purchase Ebay’s classified ads business, beating rivals including Naspers and Prosus despite them offering more cash.

Referenced from: Charged