(Alliance News) - Capital & Counties Properties PLC and Shaftesbury PLC on Wednesday welcomed the UK Competition & Markets Authority's decision not to refer its merger to a phase two investigation.
Shaftesbury is a London-focused real estate investment trust. Capco is a property firm with investments in London's West End, Covent Garden and Shaftesbury.
In June last year, the two companies agreed terms for an all-share merger to create a London-focused property investor with a combined portfolio value of GBP5.0 billion.
The UK CMA then launched a merger inquiry in December, questioning whether the move would result in a "substantial lessening of competition within any market or markets in the UK".
It set February 22 as the deadline for its phase one decision.
On Wednesday, the CMA said it had decided not to refer the merger to a phase two investigation. The court sanction hearing should take place on March 2, with the merger expected to complete on March 6.
The merger has been approved by both Capco and Shaftesbury shareholders.
Shaftesbury shares were trading 0.9% lower at 414.60 pence each in London on Wednesday morning, while Capco shares were 1.0% higher at 124.20 pence each. In Johannesburg, Capco traded 1.3% higher at ZAR27.51.
By Holly Beveridge; Alliance News reporter
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