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OFT clears Ambassador/Live Nation theatre deal

On 10 February 2010, the OFT gave unconditional clearance to the acquisition by Ambassador Theatre Group (ATG) of the theatres formerly owned by Live Nation (LN). ATG and LN owned large portfolios of theatres in the UK, with venues in 22 locations including London's West End.

A number of concerns raised by third parties related to the possibility of substantial lessening of competition in the regions based on unilateral, conglomerate and vertical effects. After detailed examination, the OFT concluded that (a) ATG and LN did not compete closely pre-merger therefore there was no realistic prospect of higher prices to producers and/or theatregoers; (b) ATG would not have the ability and incentives to foreclose rival theatres through tying or bundling, in particular given the way that producers book theatres for regional tours; and (c) ATG would not have the ability and incentive to foreclose rival producers by restricting access to its enlarged portfolio of regional theatres given its small presence in theatre production.

Alan Overd and Vicki Mertzanidou from CRA's London office advised ATG throughout the OFT investigation.

See the OFT's decision for further details.

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