(Alliance News) - The UK Competition & Markets Authority on Friday announced the launch of a merger inquiry into Capital & Counties Properties PLC and Shaftesbury PLC.
The CMA said it is considering whether a merger between the two companies would result in "a substantial lessening of competition within any market or markets in the UK".
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.
The CMA said the merger inquiry has a deadline of February 22 for its phase 1 decision.
In June, the two companies agreed final terms for their all-share merger to create a London-focused property investor with a combined portfolio value of GBP5.0 billion, with the deal previously slated for completion in the first quarter of 2023.
The combined company will be called Shaftesbury Capital PLC.
Shaftesbury shares were down 1.1% 356.78 pence per share on Friday morning in London, while CapCo shares rose 1.1% to 103.30p per share, and were up 0.4% at ZAR21.34 each in Johannesburg.
By Harvey Dorset, Alliance News reporter
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