Australia’s John Fairfax Holdings Ltd. said Monday it will buy New Zealand online auction business Trade Me for 700 million New Zealand dollars (US$466 million; euro387 million) in cash.

Fairfax chief executive David Kirk said the purchase would add more diversity to the media company, New Zealand’s biggest newspaper publisher.

Trade Me, the most visited Website in New Zealand, has 1.2 million members who are expected to post 35 million auctions in 2006.

The auction and sales site hosts everything from arts and antiques, to house and vehicle sales.

There have been persistent rumors that it was the target of takeover talks from foreign operators, including U.S. Internet auction site eBay.

“The strong revenue and earnings performance of Fairfax Digital in Australia, together with today’s acquisition of Trade Me in New Zealand, and other online opportunities that we are pursuing, are coming together to give Fairfax a higher growth profile,” Kirk said.

Trade Me founder and chief executive Sam Morgan will continue to run the business.

Posted: 03|6|06 at 9:19 am. Filed under: Auction News.