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

OLX Brazil, the 50/50 joint venture between Naspers-owned Prosus and Adevinta, which is owned by Norway’s Schibsted, will buy its competitor Grupo Zap in 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.

With Grupo ZAP, OLX Brazil will be able to offer its users more than 12 million listings from more than 40,000 real estate agencies and thousands of private listers, as well as allowing its advertisers to reach a larger audience, the companies said in a release.

In 2018, 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 will boost OLX Brazil’s capabilities to drive innovation and develop a superior customer experience, ultimately making buying, selling and renting real estate in Brazil much safer, simpler and more efficient for all players involved”,  said Andries Oudshoorn, 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 Takeaway.com 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.

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