CMA to investigate Shaftesbury and Capco merger

The £3.5b merger of West End landlords Shaftesbury and Capco is to be investigated by the Competition and Markets Authority (CMA).

The planned merger between Capital & Counties Properties (Capco) and Shaftesbury PLC (Shaftesbury) would see large swathes of popular tourist destinations including Soho, Covent Garden, Carnaby Street and Chinatown under their combined ownership.

The portfolio would amount to 2.9 million sq ft of lettable space, including 1.8 million sq ft occupied by retail and hospitality venues alongside 1.1 million sq ft of office and residential accommodation.

When announcing their intention the companies said their plan would see Capco manage retail and hospitality businesses in Covent Garden, while Shaftesbury would oversee the equivalent for Soho, Chinatown and Carnaby.

The anticipated all-share merger would result in Capco holding 47% of the combined company, with Shaftesbury controlling the remaining 53%.

The CMA has said its inquiry will examine if the merger will lead to "a substantial lessening of competition within any market or markets in the UK". An initial judgement is due by 22 February 2023.