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CMA to consider Stonegate's undertakings about EI deal
20th Dec 2019 07:35
(Sharecast News) - The Competition and Markets Authority said on Friday that it will decide by February whether to accept the undertakings offered by Stonegate to address its concerns about the company's acquisition of pub chain EI Group.
The Slug and Lettuce owner agreed in July to buy EI Group for £1.3bn. However, the competition watchdog warned earlier this month that the merger could result in a "substantial lessening" of competition in the market.
Last week, Stonegate offered undertakings to address the CMA's competition concerns.
"The CMA has considered the undertakings offered and today announced that it considers that there are reasonable grounds for believing that the undertaking offered, or a modified version of it, might be accepted by the CMA to remedy the substantial lessening of competition identified by the CMA" it said.
The watchdog said it will decide by 19 February whether to accept the undertakings. It added that the timeframe could be extended to 17 April 2020 if it considers there are "special reasons for doing so".
The Slug and Lettuce owner agreed in July to buy EI Group for £1.3bn. However, the competition watchdog warned earlier this month that the merger could result in a "substantial lessening" of competition in the market.
Last week, Stonegate offered undertakings to address the CMA's competition concerns.
"The CMA has considered the undertakings offered and today announced that it considers that there are reasonable grounds for believing that the undertaking offered, or a modified version of it, might be accepted by the CMA to remedy the substantial lessening of competition identified by the CMA" it said.
The watchdog said it will decide by 19 February whether to accept the undertakings. It added that the timeframe could be extended to 17 April 2020 if it considers there are "special reasons for doing so".