Cape Town – Naspers [JSE:NPN] is seeking Competition Commission approval to acquire South African classifieds site AutoTrader, it said on Wednesday.
“Naspers has filed an application with the Competition Commission to approve the acquisition of AutoTrader in South Africa,” Naspers investment relations officer Meloy Horn told Fin24 in an emailed response on Wednesday.
“Classifieds is a core segment for Naspers and auto verticals is part of our strategy.
“As this transaction is subject to approval, we do not wish to add additional commentary at this stage,” Horn said.
AutoTrader, which started 25 years ago, has the largest online automotive marketplace in South Africa, according to its website. Its online site gets over 4.5 million visits each month with over 70 000 searches for vehicles. AutoTrader ended its magazine publication in April this year.
Naspers-owned Media24’s online motoring site, Wheels24, displays the AutoTrader offering on its site.
If the acquisition is approved, it would add to Naspers' vision as a leading global classifieds provider. It currently owns OLX, the world's leading online classifieds platform with a presence in over 40 countries, including South Africa. This site generates over 1.7 billion page visits and 54 million listings every month on its online marketplaces.
Naspers, whose revenue increased by 19% to $14.6bn in 2017, made 72% of this from its internet and e-commerce activities, it explained in its annual report.
The focus on e-commerce comes as Naspers CEO Bob van Dijk centres the business on being a “predominantly” technology firm, moving it away from its traditional base of content and marketing (online, print and TV).
Competition Commission spokesperson Sipho Ngwema said it was notified of the merger in July.
"The commission assesses a merger by examining whether the merger raises any competition or public interest concerns," he told Fin24 on Wednesday. "The commission will engage various relevant stakeholders during its investigation to gather information, which will assist it in formulating a view on the merger.
"This is a large merger, so the commission must finalise its investigation and make a recommendation to the Competition Tribunal, who will take the final decision," he said. "The merger is still under investigation."
Naspers was trading 0.22% higher at 12:15 on Wednesday at R2 982.73 a share. Naspers is the third largest firm on the JSE, with a market capitalisation of over R1.3trn.
* Fin24 is part of Media24, a subsidiary of Naspers.
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