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Draft Bill no. 89417-6, passed by the lower house of Russia's parliament, has raised of a lot of argument.
The South African Naspers will now partner with the Swedish Avito Holding in Russia, uniting three online classified advertisment sites under the Avito brand. Naspers' two services, OLX and Slando, will gradually become part of Avito. The transition is to be completed in May.
According to FT, the deal's total cost was $570m. Naspers invested another $50 m in Avito, in exchange for a 18.6% share in the holding. Three Swedish companies: Investment AB Kinnevik, Vostok Nafta and Northzone Ventures were also named among the deal's investors.
Analysts expect Avito to gain control over 25% of Russia's Internet classified ads market, or 16% of its value, as result of the move. The site will be the world's third-largest classifieds service, after the US Craiglist.org and the Chinese 58.com. The new Avito may also join the list of Russia's five most popular websites and enjoy as many as 100 m visits a day.