0
Broadband

South Africa watchdog blocks Naspers buy of WeBuyCars

Thursday 16 May 2019 | 08:47 CET | News

South Africa’s Competition Commission has recommended to the Competition Tribunal that the proposed acquisition of WeBuyCars by MIH eCommerce, an entity of the Naspers Group, be prohibited. MIH eCommerce wishes to acquire 60 percent of WeBuyCars, but already has investments in classifieds sites OLX and the company Car Trader, which operates as AutoTrader. 

Although the commission found that the proposed transaction does not present any competitor overlap in South Africa – as Naspers is not active in the buying and selling of cars – it was found that the Naspers Group, through Frontier Car Group, has been anticipating entering the South African market for the wholesale and online buying of used cars in competition with WeBuyCars.

The commission also said that there is a vertical, supplier-customer relationship overlap because the Naspers Group owns and operates online classified automotive advertising platforms, OLX and Auto Trader, and WeBuyCars utilises these platforms to either sell or purchase vehicles. The commission said it is concerned that the proposed merger would result in the foreclosure of other traditional dealers; that is, rivals of WeBuyCars on the sell side.



Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories: Internet
Companies: Naspers
Countries: South Africa
::: add a comment

Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.







Calendar   /   Industry Events

20 May Telecom Italia Q1 2019
20 May Xiaomi Q1 2019
21 May Honor press conference
21 May ICT Spring Europe
21 May NGON & DCI World
21 May MVNOs World Congress
21 May 1&1 Drillisch AGM
21 May Connections 2019
21 May Small Cells World Summit
21 May Telefonica Deutschland AGM
22 May Analog Devices fiscal Q2
22 May China Mobile AGM
22 May Network Virtualization & SDN Europe
23 May Lenovo fiscal Q4
23 May MTS Q1 2019
23 May Weibo Q1 2019
23 May Sina Q1 2019
23 May Bezeq Q1 2019
23 May ViaSat fiscal Q4
23 May United Internet AGM
23 May Report: Dutch Broadband 2019-Q1
24 May Ice Group Q1 results
::: More Calendar Items