Green light for merger of landlords Capital & Counties and Shaftesbury

The £5bn merger of two of London’s largest landlords will go ahead after everything is cleared by competition regulators.

Capital & Counties Properties and Shaftesbury will own parts of popular destinations such as Soho, Covent Garden, Carnaby Street and Chinatown in a partnership announced last May.

The Competition and Markets Authority (CMA) was looking into the deal over fears their dominance in the West End could lead to ‘a substantial reduction in competition’. It acquitted them after a two-month investigation.

The merger, which has already been approved by Shaftesbury and Capco shareholders, is expected to close early next month. Shaftesbury owns large parts of Chinatown, Carnaby Street and Fitzrovia, north of Oxford Street.

Capco’s portfolio includes the Covent Garden market. The combined company will manage 2.9 million square feet of central London property, including retail, restaurant, office and residential properties.

Shaftesbury shareholders will own 53 percent of the joint company, called Shaftesbury Capital, while Capco investors will own the remaining 47 percent.

Last month, Shaftesbury boss Brian Bickell, 68, who will retire following the merger, said London finally saw a ‘return to normal’ after the pandemic.

Despite rail strikes, he said retail and bar sales were higher in December than before Covid.

Capco boss Ian Hawksworth, who will lead the new company, said he is confident about the year ahead for the West End.

Schachtenbury shares fell 1.5 percent, or 6.4 pence, to 412 pence. Capco rose 1.1 percent, or 1.4 pence, to 124.4 pence.