6th Nov 2019 08:32
(Alliance News) - The UK Competition & Markets Authority on Wednesday said it has opted not to refer Unite Group PLC's acquisition of Liberty Living Group PLC to a phase 2 investigation.
The CMA launched its phase 1 inquiry into the GBP1.4 billion acquisition on September 11 and was seeking comment from interested parties on whether the merger would cause reduced competition. Ultimately, it chose not to refer the matter any further.
Like Unite Group, Liberty Living provides student accommodation.
Unite Group said the CMA has now unconditionally approved its purchase of Canada Pension Plan Investment Board subsidiary Liberty Living, and the deal is expected to take place at the end of November.
Around 72.6 million consideration shares are to be issued to the Canadian pension plan by Unite, giving CPPIB a 20% stake in the enlarged group. CPPIB will have the right to appoint a single non-executive director to the combined Unite board and has nominated Thomas Jackson.
Unite expressed confidence in its ability to deliver the previously put forward cost synergies of GBP4 million in 2020 and then GBP15 million per annum starting in 2021.
Unite Students Chief Executive Richard Smith said: "We are delighted that our acquisition of Liberty Living has been approved by the CMA. This is a transformative acquisition which brings together the best of two companies with a wealth of expertise and experience in delivering for students and university partners. The enlarged group will be well positioned to meet the growing need for affordable, high quality student accommodation in university towns and cities where demand is strong.
"This, combined with our best-in-class operating platform, will mean more choice for universities and an enhanced service and welfare offer for students."
Shares in Unite Group were down 0.5% at 1,121.00 pence in London on Wednesday.
By Anna Farley; [email protected]
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