Regus has proposed to sell five serviced offices in central London after the Competition and Markets Authority raised concerns about 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 has since offered to sell offices in areas of concern, which include Hammersmith, Victoria, Canary Wharf/Docklands, Euston/King’s Cross and Paddington.
Regus has also proposed a behavioural undertaking at its Hammersmith centre if the landlord terminates Avanta’s lease and a suitable buyer cannot be found for the centre.
The behavioural undertaking would limit Regus’ ability to raise prices or reduce quality at the Hammersmith centre until the lease terminates.
The CMA now has until 1 February to consider whether to accept the proposals, or a modified version of them. It can extend the deadline if it believes there are grounds to do so.
As part of the process, the CMA will undertake a public consultation to address competition concerns.
