The UK Competition & Markets Authority on Thursday confirmed the start of an investigation into the planned merger of FTSE 250 peers Unite Group PLC and Empiric Student Property PLC.
This follows the regulator’s announcement last month that it was seeking commentary on the proposed combination.
Both firms are UK student accommodation providers and have been in negotiations since Bristol-based Unite first approached London-based Empiric back in May.
Empiric in August agreed to a takeover offer from Unite, valuing Empiric at roughly £710 million. For each share held, Empiric stockholders will receive 0.085 of a new Unite share, plus 32 pence in cash, valuing each Empiric share at roughly 94.2p for £634 million, with an additional dividend payment raising the total value to £723 million.
Empiric stock traded 0.1% lower at 78.90p midday Thursday in London, giving it a market capitalisation of £524.0 million. Shares in Unite were up 1.5% to 588.50p for a market cap of £2.88 billion.
The deal, which was approved by 86% of Empiric shareholders earlier this month, will see Empiric shareholders own 10% of the enlarged company.
Before the transaction can proceed, it requires approval from the CMA. The watchdog on Thursday said it is investigating whether the tie-up is a ‘substantial’ threat to competition in the UK student housing sector.
The CMA has until December 19 to publish a phase-one decision. If the deal is cleared, it will remain subject to a court sanction hearing, which is expected in the first half of 2026, according to Empiric.
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