24 February 2010
BECTU has welcomed the decision by the Office of Fair Trading earlier this month to clear the acquisition by Ambassadors Theatre Group of the Live Nation venues.
Supervisory official, Willy Donaghy, said the decision was a good one following the three-month hiatus since the announcement of the acquisition last November.
Alistair Mordaunt, the OFT's director of mergers, said:
"This acquisition creates a very sizeable organisation at the core of this culturally important industry and a number of producers and theatre operators were concerned about the effects this may have on audiences.
"The OFT undertook a rigorous examination of the market and we are confident that the merger will not result in a drop in the standard of performances or higher ticket prices for theatregoers."
As a result the acquisition will not be referred to the Competition Commission.
The OFT examined the potential for increased prices for producers, the threat to rival theatres and producers, the risk of a hike in ticket prices and the risk of a fall off in consumer choice. On all questions the OFT reported that its enquiry did not meet with convincing evidence in support of the claimed risks.
Bookmark this page with:
What's this?