Unite Group’s £723m takeover of rival Empiric faces scrutiny by watchdog
The Competition and Markets Authority said it was gathering information on the planned acquisition of the student landlord.
Unite Group’s planned £723 million takeover of rival student landlord Empiric could come under scrutiny by a UK watchdog over possible competition concerns.
The Competition and Markets Authority (CMA) said it was gathering information on the acquisition.
Interested parties are invited to share their views on the impact it could have on lettings competition in the UK.
The CMA said it had not yet launched its formal investigation into the proposed takeover.
Unite announced the deal last month, saying that acquiring Empiric would give it more opportunities to cater to the UK’s strongest universities.
The company, which focuses on first-year students, wants to have more exposure to “returner” students, such as undergraduates after their first year, and postgraduates.
Empiric has benefited from a growing number of applications, particularly attracting more demand from Chinese and US students.
Unite says it is the UK’s largest provider of purpose-built student accommodation, with some 68,000 beds in 23 towns and cities in England, Scotland and Wales.
Its offer for Empiric valued the fellow property group’s share capital at about £723 million.
Joining the two companies is expected to create a combined portfolio worth £10.5 billion, covering some 75,000 beds, the majority of which are in cities with Russell Group universities.