CMA to probe Shaftesbury and Capital & Counties tie up

The competition watchdog is to probe the proposed merger between London property firms Shaftesbury and Capital & Counties, it was confirmed on Tuesday.

In a brief statement, the Competition and Markets Authority said it had decided to investigate the deal - first announced in June - and invited interested parties to comment by 2 December.

The CMA said it wanted to consider if the merger of the two West End landlords could lead to a "substantial lessening" of competition.

The combined company, to be called Shaftesbury Capital, will own some of London’s most well-known real estate, including Covent Garden, Carnaby Street, Chinatown and Soho, in a portfolio worth around £5bn.

Shaftesbury shareholders will own 53% of the combined entity, and Capco investors 43%.

As at 1130 GMT, shares in Shaftesbury were off 2% at 385p while Capco was down 1% at 109.4p.