Security News > 2022 > March > UK regulator puts NortonLifeLock merger with Avast on ice

The UK Competition and Markets Authority merger inquiry into NortonLifeLock's proposed $8bn acquisition of rival antivirus provider Avast has now closed, with the regulator concluding that a tie-up could indeed reduce competition in the marketplace.

"Advanced discussions" concerning a merger of the two security vendors first surfaced in July 2021, when NortonLifeLock investors were told that a combination with Avast "Would bring together two companies with aligned visions, highly complementary business profiles and a joint commitment to innovation that helps protect and empower people to live their digital lives safely."

By August, a deal had been agreed where NortonLifeLock would acquire all Avast shares for $8bn followed by the combined companies listing on NASDAQ. At the time, the companies' boards said they "Believe that the merger has compelling strategic and financial rationale and represents an attractive opportunity to create a new, industry-leading consumer Cyber Safety business."

The deal drew the attention of the UK's competition regulator, which opened a merger inquiry on January 19 this year, saying: "The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002.".

The regulator stated today: "As the companies are close competitors, with few other significant rivals, the Competition and Markets Authority is concerned that if completed the proposed deal could lead to a reduction in competition in the UK market. This could lead to UK consumers getting a worse deal when looking for cyber safety software in the future."

NortonLifeLock and Avast now have five working days to submit proposals to address the competition concerns.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/03/16/cma_nortonlifelock_avast/