This case is involving the restricted area of the event becomes a way for companies to communicate. The case that has worried the CCM is the merger of two companies, Events Strategy Co Ltd and LC Events Ltd..
In its analysis, the CCM has found that the purchase by Events Strategy of 33% stake in SC Events is likely to have a "material influence" in the sense that it will reduce competition and choice in the die top end of the market.
However, CCM expects further developments in this field. This will restore the competition reasonably quickly. Therefore CCM does not prevent the merger.
This is not exactly the first time that the CCM is pronounced in a merger case. It has already made in the past in the insurance field. But in this case, the weight of players who wanted to merge was so weak that it would not challenge the competition in this sector. The CCM had not had to undertake a full review.
In this case comprehensive analysis of the CCM has shown that the two companies have significant market shares in the events industry, and as a result influence their merger competition in this sector. CCM believes that the two companies in question dominate the premium market sector and that their merger would be a problem of lack of competition.
However, there are many companies that operate Event just a mark below, and letting the market play, some should be able to rise to a higher level to allow competition.