The Competition Commission has signalled its approval for the merger of transmission companies Arqiva and National Grid Wireless (NGW), but has imposed a series of conditions on the merged operation. In its final report on the deal the Commission says the agreement would lead to a “substantial lessening” of competition in the sector and that the loss of rivalry could lead to higher prices and a lowering of service quality.
Confirming its initial findings, the Commission has drawn up a package of measures, including price reductions on existing contracts and the appointment of an adjudicator to resolve disputes.
The Commission has warned that if it does not receive significant undertakings from the new company then a substantial divestment of the NGW business will be required.
