The proposed merger of AEG Services and SMG to create the world’s largest facility administration firm has been cleared by the U.K.’s Competitors and Markets Authority (CMA).
The deal has additionally been cleared by the U.S. Division of Justice, Billboard has discovered and a formnal closing of the settlement is anticipated early subsequent month. First introduced in February, the settlement between AEG Services and Onex, proprietor of facility operator SMG, offers every agency 50% of the brand new standalone firm, which might be headquartered in Los Angeles and referred to as ASM International.
Led by AEG Services President and CEO Bob Newman, the brand new enterprise will oversee 310 venues, together with Manchester Area within the U.K. and NFL stadiums like Soldier Subject in Chicago, in addition to quite a few conference facilities and performing arts venues in North and South America, Asia, the Center East and Europe.
Given the dimensions of the deal and dominant market share ASM International will management because of this, the proposals naturally drew the curiosity of competitors regulators and in April the CMA launched a preliminary ‘phase 1’ investigation into the merger, following a deferment by the European Fee.
That investigation has now been accomplished with the CMA concluding that the merger wouldn’t end in a considerable lessening of competitors inside the U.K market.
Welcoming the information, a spokesperson for AEG stated in a press release: “We are pleased that the proposed merger of AEG Facilities and SMG has received unconditional clearance from the U.K. Competition and Markets Authority (CMA).” SMG is but to remark.
The deal doesn’t embody properties and leisure districts owned by AEG in Los Angeles, London, Hamburg and Berlin, or these beneath growth. As a substitute AEG Services’ contracts for venue growth will make up AEG’s principal contribution to the merger, whereas Onex is contributing its whole fairness funding in SMG to the brand new international entity.
“This isn’t about cost savings, it’s about combining complimentary assets to create something very special,” Newman advised Billboard when the plans had been first introduced in February.
Calling SMG a “great company with an amazing and deep stable of fantastic employees,” Newman stated he was trying ahead to combining it with AEG Services “into one family.”