On 21 May 2009, the OFT announced that it has decided not to refer the anticipated acquisition by Canada Pension Plan Investment Board (CPPIB) of Macquarie Communications Infrastructure Group (MCG) to the Competition Commission under the Enterprise Act 2002. The OFT published the full text of its clearance decision on 27 May 2009.
The OFT concluded that there are no horizontal overlaps between the activities of CPPIB and MCG. There is a very limited vertical overlap between the parties due to the fact that CPPIB has a stake in Wales and West Utilities, which rents space on a number of Arqiva-owned structures in the UK. In addition Wales and West Utilities provides utility services to Arqiva. However, the OFT concluded that there are no plausible competition concerns arising from this vertical relationship. There is no risk of the merger resulting in foreclosure in either gas distribution or in any of the services provided by Arqiva.
The OFT also concluded that there is no risk of conglomerate effects arising from the merger, resolving therefore that the merger would not result in a substantial lessening of competition in any market in the UK.
