Regus’s proposed sale of five serviced offices in central London has been accepted by the Competition and Markets Authority as a remedy to resolve competition concerns arising from its acquisition of Avanta.
The CMA had threatened to conduct an in-depth investigation into the deal if Regus failed to offer a solution to concerns that the acquisition could lead to a lack of competition in certain markets which could result in higher prices or a reduction in choice and quality for customers.
Regus subsequently offered to sell offices in areas of concern, which included Hammersmith, Victoria, Canary Wharf/Docklands, Euston/King’s Cross and Paddington.
Regus also proposed a behavioural undertaking at its Hammersmith centre if the landlord terminated Avanta’s lease and a suitable buyer could not be found for the centre.
The behavioural undertaking would limit Regus’s ability to raise prices or reduce quality at the Hammersmith centre until the lease terminates.
The CMA has accepted both remedies offered which it said were “appropriate to resolve its concerns”.
The announcement follows a public consultation which resulted in one submission.
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