It’s the buzz of the racing world. Liberty Media’s planned acquisition of Formula One Group could face an investigation by Britain’s Competition and Markets Authority (CMA) after reports of a possible breach of anti-competition laws.
The Britain’s Competition and Markets Authority is responsible for ensuring competition in the business environment and preventing anti-competitive activities. The CMA has launched an investigation into the possible takeover of Formula One Group by the US-based Liberty Media Corporation.
Liberty Media is a US-based mass media company that owned a wide range of business interests in communications, entertainment and media sectors.
In September, Liberty Media announced its intention to acquire Delta Topco, the company of Formula One Group, from private equity firm CVC Capital Partners for a whopping $4.4 billion in cash, convertible debt, and stock.
The organization has already announced in a statement that it has completed an initial acquisition of about 18.7 percent minority shares in the grand prix racing. Unfortunately, the completion of this transaction was subject to a certain regulatory condition, which includes government clearances and approvals by antitrust competition laws authorities.
On Monday, the CMA announced that it still considering whether or not Liberty Media’s plans to acquire the racing sports are in line with Britain's anti-competition laws, which has been laid down in the Enterprise Act 2002.
Reports said that CMA is still looking whether the deal has resulted in a lessening of competition in the market. Interested parties that have concerns that Liberty's deal could lessen competition in the market have been asked to submit their claims.
An official decision on whether or not Liberty Media will face an investigation will be made on January 5, 2017.
Formula One, or F1 for short, is the highest class of auto racing that is sanctioned by the Formula One’s governing body, the FIA. The F1 has been the premier form of motorsports racing and has some of the fastest racing cars in the world, with speeds of up to 240 mph.
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