FCA approves AO World's MusicMagpie takeover

Online electronics retailer AO World has received approval from the Financial Conduct Authority for its £10.0m cash takeover of MusicMagpie.

AO World and MusicMagpie both said on Wednesday that the FCA has determined to approve the acquisition but added that the acquisition still remained subject to other conditions.

If the merger receives final sign-off, the scheme was expected to become effective in either Q424 or Q125.

The deal values MusicMagpie at roughly £9.98m, but at 9.0p per share, still represented a premium to the stock's 5.75p closing price on 1 October, when the takeover was first floated.

As of 1000 GMT, AO World shares were up 2.87% at 106.98p, while MusicMagpie shares were 1.71% weaker at 8.60p.

Reporting by Iain Gilbert at Sharecast.com