OLX enters Western European vehicle classified market

ONLINE marketplace OLX will enter the Western European auto market with the acquisition of leading French motors classified platform La Centrale for €1.1 billion (about R22.38 billion), its owner, the JSE and Amsterdam-listed Prosus said on Friday.

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Prosus, a subsidiary of Naspers, is focused on food and lifestyle e-commerce and in August reported a 54% jump in its e-commerce adjusted core earnings. On Friday it said that buying La Centrale would help it enter the European autos market and strengthen its e-commerce presence in the continent, complementing the recently announced planned acquisition by Prosus of meal delivery company Just Eat Takeaway.

“T expect to invest more in AI technology in France,’ Prosus CEO Fabricio Bloisi said in a statement. Prosus expects the deal to close by year-end.

OLX CEO Christian Gisy said in an online presentation La Centrale typically has approximately 400 000 vehicles listed on its platform, and, very roughly, some 1.4 million vehicles are sold off its site in a year. He said there were some eight to 10 other auto classified sites in France, but that La Centrale is the market leader. He said the company has also been profitable for many years.