LN-Gaiety’s planned acquisition of Denis Desmond-owned promoter MCD Productions is under investigation by UK regulator CMA, as Irish watchdog continues its case
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The preliminary results of the CMA's ‘phase-2’ investigation indicate no lessening of competition in Northern Ireland as a result of LN-Gaiety's takeover of MCD
By Jon Chapple on 07 Nov 2019
The latest phase of a Competition and Markets Authority (CMA) inquiry has found that the acquisition of MCD Productions by Live Nation-Gaiety does not raise competition concerns, paving the way for regulatory approval of the long-delayed merger in the UK.
The CMA’s preliminary ‘phase-1’ inquiry found, somewhat implausibly, that a merger of Live Nation and MCD could lessen competition in Northern Ireland by restricting the ability of rival promoters to sell tickets through LN-owned Ticketmaster.
The preliminary findings of the regulator’s in-depth, ‘phase-2’ investigation, however, say the opposite: that the merger is “not likely to raise competition concerns, as Live Nation would not be expected to have the incentive to harm rival music promoters by making it harder for them to sell tickets through Ticketmaster”.
The UK competition watchdog is asking for views on its provisional findings by 28 November, with the deadline for final report set for 8 January 2020.
LN-Gaiety Holdings – a joint venture between Live Nation UK and Denis Desmond’s Gaiety Investments – announced last August it planned to acquire Desmond’s company MCD Productions. Cork-born Desmond succeeded John Probyn as Live Nation’s chairman in the UK and Ireland in 2015, although MCD – founded by Desmond and Eamonn McCann in 1980, and now co-owned by Desmond and his wife, Caroline Downey – remained independent of Live Nation/Gaiety.
The company is one of the big two promoters and venue operators in the Irish republic, alongside Peter Aiken’s Aiken Promotions.
The LN-MCD merger has already been cleared by the CCPC, the CMA’s counterpart in the Republic of Ireland.
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