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.

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Categories: Internet
Companies: Naspers
Countries: South Africa
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