But here the purchase raised competition concerns, prompting the CMA to launch an in-depth investigation just days later.
In the CMA’s original phase two decision, it found that FNZ selling the entire GBST business was necessary to address its concerns.
After considering new representations and evidence during the remittal, the CMA provisionally found that its competition concerns would also be “effectively and proportionately” addressed by requiring FNZ to sell GBST.
The assets would be restricted to those that do not affect GBST’s competitiveness in the supply of retail investment platform solutions.
Today the CMA announced its deems this approach to be the best course of action.
CMA gives Virgin and O2 merger green light
Following a provisional clearance last month, the CMA is now allowing the proposed merger of Virgin Media and Virgin Mobile with O2 to go ahead.
From:
20 May 2021
Both Virgin and O2 sell wholesale services to a number of mobile operators in the UK. Virgin supplies wholesale leased lines to mobile operators and O2 provides its mobile network to companies that do not have their own.
The CMA was initially concerned that, following the merger, Virgin and O2 could raise prices or reduce the quality of these wholesale services. If this were to happen, it could lead to other companies being forced to offer lower quality mobile services or increase their retail prices which would negatively impact consumers.
UPDATE 2-Britain clears $44 bln Virgin-O2 mobile merger deal Reuters 2 hrs ago
(Adds further details)
By Pushkala Aripaka and Paul Sandle
May 20 (Reuters) - Britain s competition regulator cleared a $44 billion merger between broadband company Virgin Media and Telefonica s UK mobile network O2 on Thursday, after a months-long review.
Virgin owner Liberty Global and Spain s Telefonica agreed the merger a year ago, creating a powerhouse in broadband and mobile to take on market leader BT. After looking closely at the deal, we are reassured that competition amongst mobile communications providers will remain strong and it is therefore unlikely that the merger would lead to higher prices or lower quality services, Martin Coleman of the Competition and Markets Authority (CMA) said.
Publishing date: May 20, 2021 • 2 hours ago • 1 minute read •
Article content
Britain’s competition regulator cleared a $44 billion merger between broadband company Virgin Media and Telefonica’s UK mobile network O2 on Thursday, after a months-long review.
Virgin owner Liberty Global and Spain’s Telefonica agreed the merger a year ago, creating a powerhouse in broadband and mobile to take on market leader BT.
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Try refreshing your browser, or Britain clears $44 bln Virgin-O2 mobile merger deal Back to video
“After looking closely at the deal, we are reassured that competition amongst mobile communications providers will remain strong and it is therefore unlikely that the merger would lead to higher prices or lower quality services,” Martin Coleman of the Competition and Markets Authority (CMA) said.