CMA clears Capco and Shaftesbury merger

The Competition and Markets Authority (CMA) has cleared the £3.5b merger of West End landlords Shaftesbury and Capital & Counties Properties (Capco).

The court sanction hearing is expected to take place on 2 March and, subject to the satisfaction or waiver of the remaining conditions, the merger is expected to complete on 6 March.

The merger will see swathes of popular tourist destinations including Soho, Covent Garden, Carnaby Street and Chinatown under their combined ownership.

The portfolio will amount to 2.9 million sq ft of lettable space, including 1.8 million sq ft occupied by retail and hospitality venues, alongside 1.1 million sq ft of office and residential accommodation.

When announcing their intention to merge, the companies said their plan would see Capco manage retail and hospitality businesses in Covent Garden, while Shaftesbury would oversee the equivalent for Soho, Chinatown and Carnaby.

Capco is expected to hold 47% of the combined company, with Shaftesbury controlling the remaining 53%.