OLX Brazil, which is part-owned by Prosus, buys competitor

OLX Brazil, which is part-owned by Prosus, buys competitor

OLX Brazil, the 50/50 joint venture between Naspers-owned Prosusand Adevinta, which is owned by Norway’s Schibsted, will buy its competitor Grupo Zapin a deal worth around R10 billion.

OLX Brazil will buy 100% of Grupo ZAP, which offers online property classifieds in Brazil,for 2.9 billion Brazilian real.

WithGrupo ZAP, OLX Brazil will be able to offer its users more than 12 millionlistings from more than 40,000 real estate agencies and thousands of privatelisters, as well as allowing its advertisers to reach a larger audience, thecompanies said in a release.

In2018, Grupo ZAP had net revenues of R$217 million and suffered an EBITDA loss of R$18 million,with an average of 28 million visits per month in 2019.

“The transaction willboost OLX Brazil’s capabilities to drive innovation and develop a superiorcustomer experience, ultimately making buying, selling and renting real estatein Brazil much safer, simpler and more efficient for all players involved”,  said AndriesOudshoorn, CEO of OLX Brazil, in a statement.

The acquisition follows an unsuccessful hostile bid for the food delivery company Just Eat in the UK, which won in a £5.9 billion deal.

Prosus' share price slipped 0.6% by midday on Wednesday. The share has gained 4% so far this year, despite a widespread global sell-off last week.

Fin24 is part of, which is in the Naspers-owned Media24 stable.