Serviced office operator Regus could be forced to sell some of its London leases after the Competition and Markets Authority’s first phase investigation of the company’s takeover of Avanta raised concerns.
Hammersmith, Victoria, Canary Wharf, Docklands, Euston, King’s Cross and Paddington were all flagged up by the CMA as areas where there may not be sufficient competition following the merger, potentially leading to less choice and higher prices for customers.
The CMA said the merger would be referred for a phase-two investigation unless Regus offers acceptable undertakings to address its concerns.
Regus agreed to acquire Avanta in April, creating a business with 320 serviced office locations in 50 UK cities.
