2023-05-02 16:34:28
Last week, the CMA delivered its decision on the takeover of Activision Blizzard by Microsoft. We thus learned that the commission is opposed to the acquisition, thus blocking the repurchase, unless there is a start following the call by Microsoft.
Inability to merge for the next ten years
If, however, this famous call comes to nothing, the CMA might prevent a merger between Microsoft and Activision Blizzard, and this, for many years! Indeed, the report published by the CMA mentions article 84 of the law, making it possible to issue an ordinance to prohibit the merger of the two groups for 10 years.
The ban would be achieved by accepting recognizances under section 82 of the act or issuing an order under section 84 of the act prohibiting the merger and preventing the parties from attempting to merge for a further period : our normal practice would be to prevent any future merger between the parties for the next ten years, absent a change in circumstances.
This passage, which can be consulted on page 336 of the report, paragraph 11.29, should obviously not delight the management of Microsoft, as well as that of Activision Blizzard, who would thus be forced to wait a long time before potentially retry such an operation.
However, it remains to be seen what Microsoft’s call will give, as well as the threats from Microsoft and Activision Blizzard towards the United Kingdom.
The full CMA report can be found at this address.
1683057999
#CMA #blockade #prohibits #Microsoft #acquiring #Activision #years #XboxOne
