Liberty Media’s Formula 1 takeover under investigation in the UK
Liberty Media's takeover of Formula 1 could be investigated by the UK Competition and Markets Authority (CMA) to ensure that it does not contravene competition law.
This Monday, the UK’s Competition and Markets Authority (CMA) announced that it will study the process of the F1 acquisition by Liberty Media to verify its compliance with competition laws in force in Great Britain. To do this, the institution has given the parties involved until November 21 to submit any information necessary for the investigation.
« The CMA will examine whether this transaction could result in the creation of a relevant merger situation under the provisions of the Enterprise Act 2002 and whether this situation could lead to a substantial lessening of competition in one or more markets for goods and services in the UK ».
Recall that last September, the American group Liberty Media decided to become the majority shareholder of F1 by purchasing the shares held by the CVC consortium, which had been the owner since 2006. The organization has already made an initial minority acquisition of 18.7% from Delta Topco, the parent company of F1, and will therefore acquire all the shares next year. The total value of the deal is 8 billion dollars.
When announcing the acquisition of F1, Liberty Media specified that the agreement was subject to certain conditions, including « certain authorizations and approvals from antitrust authorities and competition law in various countries. »
The UK Competition and Markets Authority has until January 5, 2017, to decide whether to continue the investigation against Liberty Media.
