LONDON — The U.K.’s competition watchdog has ordered Viagogo to put its planned $4 billion acquisition of StubHub on hold while it continues to investigate potential anti-competitive affects of the companies' merger.
For Viagogo and StubHub, that means that they cannot take any action that leads to the integration of StubHub with Viagogo, including changes to key staff, the merging of brand identities and the sharing of software and hardware. Beginning Feb. 21, CEOs from both Viagogo and StubHub are required to report to the CMA every two weeks and confirm they are complying with the terms of the order. Breaching the terms of the CMA order can result in a fine of up to 5% of a company's turnover -- both inside and outside the U.K. -- and possible imprisonment for up to two years.
The spokesperson said they do not anticipate the order having “any impact to the planned close” of the merger, which they expect to complete by the end of the first quarter 2020.