UK Authorities Probe LN, Isle of Wight Merger

Live Nation’s proposed merger with Isle Of Wight festival is on hold pending an investigation by the UK’s Competition and Markets Authority to determine whether it leads to unfair competition. 

John Phillips / Invision / AP Photo – Isle Of Wight 2014
June 12-16 with headliners Red Hot Chili Peppers, Kings Of Leon, and Biffy Clyro. 

In the meantime, the CMA expects both companies to operate as if an acquisition of the festival by LN-Gaiety had never occurred.

The authorities have informed the companies that “Live Nation and LN-Gaiety shall not (…) take any action which might lead to the integration of the Isle of Wight Festival business with Live Nation business,” among many other restrictions listed in the initial enforcement order.

As onthewight.com explains, the investigation will initially last 40 working days, which will give “anyone interested” a chance to comment. If after this initial phase no concerns about the deal have emerged, the merger will go ahead as planned.

If, on the other hand, the CMA arrives at the conclusion that the deal would lead to unfair competition, the companies will be offered a chance to make concessions.

In case those concessions please the authorities, the acquisition will be waved through. If not, another investigation involving “an independent panel” will be launched, taking “six months to complete.”