The £5billion merger of two of London’s biggest landlords will go ahead after getting the all-clear from competition regulators.
Capital & Counties Properties and Shaftesbury will own swathes of popular destinations such as Soho, Covent Garden, Carnaby Street and Chinatown in a tie-up announced last May.
The Competition and Markets Authority (CMA) investigated the deal over fears their dominance in the West End could lead to ‘a substantial lessening of competition’. It has cleared them after a two-month probe.
Merger: Capital & Counties and Shaftesbury will own swathes of popular destinations such as Soho, Covent Garden, Carnaby Street (pictured) and Chinatown in a tie-up announced last May
The merger, already approved by Shaftesbury and Capco’s shareholders, is expected to be finalised early next month. Shaftesbury owns large parts of Chinatown, Carnaby Street and Fitzrovia, north of Oxford Street.
Capco’s portfolio includes Covent Garden market. The combined firm will control 2.9m square feet of real estate in central London including shops, restaurants, offices and housing.
Shaftesbury shareholders will own 53 per cent of the joint company, to be called Shaftesbury Capital, with Capco investors owning the remaining 47 per cent.
Last month Shaftesbury boss Brian Bickell, 68, who will retire after the merger, said London was finally seeing a ‘return to normal’ after the pandemic.
Despite rail strikes, he said shop and bar turnover at its properties was ahead of pre-Covid levels in December.
Capco boss Ian Hawksworth, who will run the new company, said he is confident about the year ahead for the West End.
Shaftesbury shares fell 1.5 per cent, or 6.4p, to 412p. Capco was up 1.1 per cent, or 1.4p, to 124.4p.
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