The United Kingdom’s competition watchdog announced Tuesday (Jan. 11) that it will investigate the proposed merger between Brookfield Asset Management Inc. and Scotia Gas Networks Ltd. (SNG).
Under the terms of the deal, the Scottish and Southern Electricity Networks (SSE) agreed to sell its entire 33.3% stake in SGN for 1.23 billion pounds ($1.67 billion) to a division of the Ontario Teachers’ Pension Plan Board in Canada and Brookfield Super-Core Infrastructure Partners, Reuters reported.
The Competition and Markets Authority (CMA) said the action is based on the Enterprise Act 2002, the U.K. competition law that governs mergers. It’s the first step to let Brookfield Asset Management Inc. know that its planned acquisition of a minority stake in Scotia Gas Networks Limited is under review. Investigators said the inquiry will commence on Jan. 12, and a second inquiry could begin on March 8.
“The CMA is considering whether … this transaction … may … result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” the CMA wrote.
As part of the investigation, the CMA has invited comments on the transaction from any interested party.
The inquiry comes less than a week after PYMNTS reported the CMA has launched an investigation into NEC Software Solutions’ acquisition of Capita Secure Solutions and Services.
NEC must await the outcome of the CMA’s investigation before it can proceed with the 62 million pound (nearly $84 million) purchase that would merge the two companies.
The deal to buy the Secure Solutions and Services business in London from Capita was announced last fall by the U.K. division of Japan-based NEC. It closed on Jan. 4.
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