Used car advertising platforms Gumtree and Motors.co.uk are being offered for sale after Norwegian online advertising business Adevinta completed the acquisition of eBay Classifieds Group.
Motors.co.uk, Gumtree and eBay were brought together under one brand, the eBay Motors Group, in November 2019.
At the time the new entity said that it would enable motor retailers to access their broad range of vehicle advertising services from a single point.
New owner Adevinta has agreed to sell the Motors.co.uk and Gumtree – along with its Shpock classifieds site – after the Competition and Markets Authority (CMA) expressed concerns that a deal between it and the Silicon Valley-based eBay would see Facebook emerge as its only true competitor, however.
eBay completed the transfer of its eBay Classifieds business to Adevinta in exchange for $2.5bn (£1.8bn) in cash and a 44% equity stake in Adevinta.
Adevinta is said to be the 25th largest online job advertising firm with eBay the 33rd largest online job advertising firm.
The deal between the two businesses will create a globally scaled, pure-play online classifieds leader, which covers a population of one billion people and receives around three billion monthly visits, a statement revealed.
Adevinta chief executive Rolv Erik Ryssdal, said: “This is a game-changing transaction for Adevinta, making us the world’s leading online classifieds group with leading market positions in 16 countries.
“Adevinta has unparalleled scale in technology and talent that will allow us to build world-class products to create value for consumers and advertisers in a rapidly changing environment.”
The Financial Times reported the CMA’s approval of the Adevinta/eBay deal earlier this month.
In a statement reported by the newspaper, the CMA said it “considers that the undertakings given by Adevinta and eBay are appropriate to remedy, mitigate or prevent the substantial lessening of competition, or any adverse effect which may be expected to result from the transaction.”