The Competition and Markets Authority (CMA) of the United Kingdom has initiated an investigation into the proposed merger between Capital & Counties Properties and Shaftesbury.
It is evaluating whether a merger between the two companies would result in a “substantial reduction of competition in any or all UK markets.”
The planned merger of Capital & Counties Properties and Shaftesbury would result in the joint ownership of numerous major tourist locations, such as Soho, Covent Garden, Carnaby Street, and Chinatown.
The combined company will hold approximately 2,900,000 square feet of premium real estate in central London, including retail, restaurants, offices, and homes.
The CMA stated that the merger investigation has a phase 1 decision deadline of February 22.
In June, the two businesses reached an agreement on the final terms of an all-share merger, which will establish a London-focused property investor with a combined portfolio worth £5 billion. The transaction was originally scheduled to close in the first quarter of 2023.
The name of the new corporation will be Shaftesbury Capital.
The agreement will conclude a courtship that began before the coronavirus outbreak.
Both companies have long touted the benefits of a merger that would give the combined entity ownership of one of the capital’s most popular shopping and entertainment venues.
