Following a request by More Group and Decaux, the Office of Fair Trading (OFT) is to pass its recommendations on the proposed merger between the two companies to the Department of Trade and Industry (DTI). Decaux’s takeover bid for More of £475 million was announced last week and caused More to back out of a merger agreement with US group Clear Channel Communications (subscribers see More Group Withdraws Clear Channel Agreement).
The OFT is required to investigate any deal where either the assets involved are over £70 million or when the market share of the combined group exceeds 25%. The takeover of More by French group Decaux crosses both these criteria. The combined company would give Decaux a 25% share in the total UK outdoor market, and a 90% majority in the street furniture market.
The OFT will look at the deal and pass its recommendations to the DTI; the DTI is ultimately responsible for deciding whether the OFT should perform a full investigation. Unless there is an extension to the inquiry, an announcement will be made by the DTI on 30 April. Should there be an extension, the announcement will follow no more than 15 days from that date.
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