(Sharecast News) - The Competition and Markets Authority said on Wednesday that it has provisionally cleared NortonLifeLock's $8.6bn acquisition of UK rival Avast.
The acquisition was referred for an in-depth investigation in March, after the competition watchdog identified concerns. Following the more detailed probe, however, the CMA has provisionally concluded that the deal does not raise competition concerns in the UK.
"The CMA's investigation has found that the supply of cyber safety software to consumers is rapidly evolving," it said. "Providers of both paid-for and free services are continually developing and improving their products over time to meet different and changing customer needs.
"While the CMA's Phase 1 decision raised concerns about the extent of competition that the merged business would face, a more detailed analysis of the deal has found that the merging businesses face significant competition. This comes from McAfee - their main rival - plus a range of other suppliers that currently have a smaller market position in the UK."
The CMA also found that security applications provided by Microsoft are increasingly important alternatives for consumers.
At 0810 BST, Avast shares were up 42% at 681.20p.
