The UK’s Competition and Markets Authority (CMA) has extended its investigation into the purchase of Broadway Technology by Ion Group by four months due to the failure of Ion to meet a deadline for providing information and documents relating to the deal.
The deal, which was announced in February 2020, did not disclose terms and was cited as a “recapitalisation” of Broadway by the firms. The CMA says the information and documents required under the UK’s Enterprise Act have not been provided to its satisfaction. “The CMA therefore considers that ION has failed (with or without a reasonable excuse) to comply with a requirement of a notice under section 109 of the Act,” it states.
Until the CMA completes its investigation and grants approval the two companies must refrain from any action that would be viewed as a de facto completed merger, such as the integration of business lines or a reduction in competition levels.