The Competition & Markets Authority has launched an investigation into the £3.5bn merger of London landlords Capco and Shaftesbury.
The pair announced plans to merge in May this year, creating a 2.9m sq ft portfolio that would stretch from Covent Garden to Carnaby Street.
Rumours of a merger had been rife since Covent Garden owner Capco bought Samuel Tak Lee’s 25% stake in Soho-centred Shaftesbury two years ago. That deal gave Capco the power to block other potential buyers.
Now the CMA is inviting comments about whether the merger would result in a “substantial lessening of competition”.
Those wishing to comment have until 2 December to do so.
If the merger was to go ahead, it would create a West End-focused REIT with a portfolio of 2.9m sq ft of lettable space, comprising 1.8m sq ft of retail and hospitality space and 1.1m sq ft of offices and housing.
The merged company would be led by Shaftesbury chair Jonathan Nicholls and Capco chief Ian Hawksworth.
Brian Bickell, who has been with Shaftesbury for 36 years, including 11 as chief executive, would retire on completion of the transaction. Executive directors Simon Quayle and Tom Welton, who have been with the company for more than 30 years, would also leave the business, while Capco’s chair Henry Staunton would step down from the board.
Situl Jobanputra would become chief financial officer and Chris Ward the chief operating officer. The board would contain strong non-executive representation from both companies, with Richard Akers as the senior independent director. An executive committee, containing equal representation from the existing Shaftesbury and Capco leadership teams, would be responsible for the day-to-day management and operation of the combined company.
Capco’s Michelle McGrath would be responsible for the combined Covent Garden portfolio, and Shaftesbury’s Andrew Price would be responsible for the Carnaby, Chinatown and Soho portfolio. Samantha Bain-Mollison would lead group leasing.
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
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