3rd Aug 2022 10:49
(Alliance News) - Avast PLC shares surged 43% after the UK Competition & Markets Authority said it has provisionally cleared NortonLifeLock Inc's acquisition of its cybersecurity peer, following an in-depth probe of the deal.
Avast shares were up 43% to 683.40 pence each in London on Wednesday morning.
Tempe, Arizona-based NortonLifeLock had agreed, back in August 2021, to buy Prague-based Avast in a cash-and-shares deal worth USD8.6 billion at the time. Avast currently has a market capitalisation of GBP7.06 billion, about USD8.61 billion.
In March 2022, the UK's CMA referred the merger to a phase 2 investigation, after identifying competition concerns during an initial phase 1 investigation. Both companies offer cyber safety software to consumers under a variety of different brands. Products include antivirus software, privacy software and identity protection software.
On Wednesday, the CMA cleared the deal.
"The CMA's investigation has found that the supply of cyber safety software to consumers is rapidly evolving. Providers of both paid-for and free services are continually developing and improving their products over time to meet different and changing customer needs," the watchdog said.
The enlarged firm still faces stiff competition, including "main rival" McAfee, the CMA explained. In addition, Microsoft Corp's own in-house cybersecurity applications in the Window operating system are "increasingly important alternatives for consumers".
NortonLifeLock expects the takeover of Avast to close on September 12, after the CMA's final report is published.
"The CMA welcomes responses from interested parties to its provisional findings by August 24. These will be considered ahead of the CMA issuing its final report, which is due by September 8, 2022," said Kirstin Baker, chair of the CMA inquiry group.
By Sophie Rose; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
AVST.L