25th Mar 2022 09:44
(Alliance News) - The UK Competition & Markets Authority on Friday said it will refer Avast PLC's takeover by NortonLifeLock Inc to a phase two investigation.
Last week, the competition regulator said its phase one probe found the merger could reduce competition in the UK. The CMA explained that Avast and NortonLifeLock are "close competitors, with few other significant rivals".
NortonLifeLock at the time described the decision by the CMA as "surprising" and said it did not intend to propose any phase one remedies.
The CMA said it was told last Friday the parties would not be offering any undertakings to address the watchdog's concerns. As such, it will progress the merger to a phase two probe.
Tempe, Arizona-based NortonLifeLock had agreed back in August to buy Prague-based Avast in a cash-and-shares deal worth USD8.6 billion at the time. UK antitrust clearance was the only remaining regulatory condition for the deal, which had been expected to close on April 4. Due to the regulatory impasse, the companies now expect the acquisition to complete in "mid-to-late 2022".
Avast shares were up 0.1% at 572.00 pence in London on Friday. NortonLifeLock closed 2.3% higher at USD28.06 in New York on Thursday.
By Lucy Heming; [email protected]
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