The Office of Fair Trading is investigating whether Capital Shopping Centres’ acquisition in January of the Trafford Centre in Manchester reduces competition in the market.
The OFT said it was conducting a merger inquiry to ascertain whether the issue should be referred to the Competition Commission.
An OFT spokesman said: “It is too early to speculate on the outcome of this particular case. We have invited comments from interested parties and expect a decision by 3 May.”
Parties have until 22 March to send in written representations about any competition or public interest issues.
The OFT said there are several possible outcomes of such an investigation, including: that the matter doesn’t qualify for a review, that the acquisition will be investigated and cleared, or that it will be referred to the Competition Commission if it is found to have resulted in a reduction of competition in the market.
A spokesman for Capital Shopping Centres said: “CSC does not believe there are any competition issues with the acquisition of the Trafford Centre.
“However, it is not uncommon for an acquisition of this size to be looked at and CSC will of course cooperate fully.”
Following its purchase of the Trafford Centre, CSC owns four of the UK’s top six out-of-town shopping complexes.
As part of the deal, the site’s former owner, Peel Group, received about a one-fifth stake in CSC and owner John Whittaker became the mall owner’s deputy chairman.
nathan.cross@estatesgazette.com
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