Engagements

CMA unconditionally clears AEG/Onex joint-venture

The UK competition authority (CMA) has unconditionally cleared the proposed joint-venture between Anschutz Entertainment Group, Inc and Onex Corporation. Both companies operate and manage live entertainment venues in the United Kingdom and globally, including the Manchester Arena and The O2 Arena in London.

The CMA examined the transaction at a national level, focusing on the parties’ venue management operations and the degree of competition in venue space provision. With CRA’s support the parties were able to persuade the CMA that no competition concerns would arise on the grounds of horizontal unilateral effects, vertical effects or conglomerate effects.

CRA’s team supported the JV parties during the CMA’s proceedings with analysis of the extent to which the parties compete to host entertainment events at their major venues based on historic bookings and sales data, a financial model of the unique vertical arithmetic of the JV, and a review of the parties’ bids for the provision of venue management services at other locations.

The JV was also approved by the European Commission under a simplified procedure, given minimal overlaps in the parties’ operation in Germany.

The CRA team consisted of Oliver LathamNitika BagariaMariam Arutyunyan, Jakub Drabik, and Daniel Weeden.

Please see the CMA’s case page and the European Commission’s case page.