Schibsted-owned classifieds business Blocket has received an objection to its planned acquisition of property site Hemnet from the Swedish Competition Authority.
Blocket last week received a draft statement of objections from the competition authority detailing its concerns in relation to the acquisition which was initiated late last year.
In the statement, the Swedish Competition Authority takes a negative view to the transaction in its current form.
Schibsted says it will continue its dialog with the Swedish Competition Authority to explore whether commercially viable remedies can be offered to address the concerns identified by the authority.
Schibsted signed an agreement to acquire 80 per cent of Hemnet in late December last year.
All four existing shareholders of the Swedish real estate classifieds accepted Schibsted's offer to acquire Hemnet, and an agreement had been signed.
At the time, the acquisition valued Hemnet to SEK 1.5 billion (EV on a 100 per cent basis), which is equal to the offer Schibsted made in May 2015.
Fastighetsbyrån and Svensk Fastighetsförmedling agreed to sell all of their shares to Schibsted (34 per cent and 16 per cent, respectively).
Meanwhile Mäklarsamfundet and FMF (Fastighetsmäklarforbundet) both sold 15 per cent to Schibsted and kept 10 per cent.
The acquisition was always subject to clearance by Swedish competition authorities (KKV), with the transaction expected to close within first half 2016.
Hemnet invoices all real estate sellers directly for listings, and the sum on the invoice is split 50/50 between Hemnet and the realtors.