SvD Business is reported that Schibsted received the green light from a group of brokerage chains to buy 80 percent stake in residential site Hemnet. At the same time it was announced that the acquisition is expected to close during the first half of 2016, under the condition to approval by the Competition Authority.
In the current situation, Schibsted Block Housing, which after Hemnet is the largest player in the digital housing market. On the market there are also smaller players Booli, BoVision and Hittahem.
On Wednesday announced Competition Authority that they deepen their investigation of the affair, a matter that could take up to three months.
– this is basically about the runner-up buying one in the market for digital home advertising. We have our initial market contacts received indications that the acquisition may have negative effects on the market, says Per Karlsson, General Counsel of the Competition Authority, told SvD Business.
To avoid Schibsted would control both Hemnet and block housing has media group announced that they cede control of block Property to the independent housing site BoVision. Via a license for two years buying BoVision right to operate Block Housing estate advertising. The Company may also take over advertising sales.
In depth review need FCA investigate whether BoVision actually solve the competition problems that may arise.
– BoVision is a very small player in the market for digital home advertising. Therefore we have chosen to investigate this more deeply, says Karlsson.
From the complete merger notification received by the Competition Authority, for a 25-working-day review. In this first review the matter, also known as phase one, leaving Konkurrenverket approval of 90 percent of the cases.
– Most agree we are in phase one. Of the 60 cases a year end up about 10 percent in phase two. We have investigated this transaction in 25 days and now we need three months. Then we get to June 9 to decide whether we should take this to court and we will insist on the prohibition of the deal or not, says Karlsson.
Per Karlsson has previously driven the court process against Swedbank’s acclaimed brokerage merger with the Swedish Property. It was a business which then stopped and lifted. Then it was about two brokerage chains could be merged. Now it’s about the runner-up buying one in the market for digital home advertising.
– We have good knowledge of the market, since Block rentals were up for assessment even in the affair, in that Swedbank and the Swedish Property was a major shareholder in Hemnet. Even then, we noted that Hemnet has a strong position in the market.
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