Adevinta, eBay secure regulatory approval for $13bn advertising tie-up

US ecommerce group eBay and Norway’s Adevinta have secured regulatory approval for a tie-up of their global classified ads businesses.

According to an announcement made by the Norwegian firm on Friday, the deal will allow Adevinta to acquire eBay's Classifieds Group in return for $2.5bn in cash and 540m shares.

The final value of the transaction rises to around $13bn at current stock market prices.

The final regulatory approval came from the Austrian competition watchdog after eBay agreed to reduce its ownership in Adevinta during the next 18 months.

eBay will have to make similar concessions in the Austrian market. "The remedies proposed by Adevinta and eBay address the FCA's concern that the transaction could potentially lessen competition in the Austrian market," the company said.

"Adevinta is pleased to announce that closing of the transaction will be initiated shortly and is expected to complete on or about 25 June," the Oslo-listed company said in its statement.

The transaction will make eBay Adevinta’s largest shareholder with a 44% stake. It will also have two seats on the board of the firm.