Mitie's Acquisition of Interserve Cleared to go Ahead

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17 November 2020

The Competition and Markets Authority has cleared Mitie's acquisition of Interserve to proceed, subject to the approval of Mitie's shareholders.

The vote for this will be held on 23 November 2020. Subject to this approval, the deal is expected to be completed on 30 November 2020. 

This news comes after a previous investigation by the Competition and Markets Authority (CMA), into whether the deal might reduce competition in the FM sector.

A spokesperson from Mitie commented that the company's share price has "responded well this morning."

Phil Bentley, CEO at Mitie said of the news:

"We welcome the announcement from the CMA confirming that it has provided merger clearance for our acquisition of Interserve FM. Receiving CMA clearance is an important milestone as we work towards completion of the transaction."

£81m Off – Mitie and Interserve Renegotiate Terms of Sale

ThisWeekinFM reported earlier in November that the terms of the sale had been renegotiated, with the transaction now valued at £190m rather than the previously stated £271m.

Mitie announced on 25 June 2020 that it had signed a sale and purchase agreement to acquire Interserve's Facility Management business on a cash-free and debt-free basis for a total consideration of approximately £271m, comprising £120m in cash and approximately 358m shares in Mitie.

However, an agreement was signed to amend the terms of the sale so that it will acquire Interserve Facilities Management on a cash-free and debt-free basis for consideration of £120m in cash and approximately 248m shares in Mitie, valuing the transaction at approximately £190m based on closing share prices at the time.

Picture: a photograph of Phil Bentley

Article written by Ella Tansley | Published 17 November 2020

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