The final approval follows CMA's provisional clearance in August 2022, which concluded the deal between the two cyber safety software firms does not lead to competition concerns in the UK
NortonLifeLock signed a cash and stock deal in August 2021 to acquire Avast. (Credit: Norton LifeLock/Wikimedia Commons)
The UK Competition and Markets Authority (CMA) has cleared US-based NortonLifeLock’s previously announced $8.6bn acquisition of Avast following the completion of an in-depth merger investigation.
The final approval has come following CMA’s provisional clearance in August 2022.
The UK competition watchdog concluded that the deal between the two cyber safety software providers does not raise competition concerns in the country.
Both NortonLifeLock and Avast provide cyber safety software to consumers. These include antivirus software, privacy software, and identity protection software under a range of different brands.
The cash and stock deal between NortonLifeLock and Czech Republic-based Avast was announced in August 2021.
As part of its investigation into the deal, the CMA found that security applications offered by Microsoft provide consumers with increasingly significant alternatives.
Microsoft’s built-in, integrated security application now gives protection on par with many of the solutions provided by specialist suppliers.
Additionally, CMA said that applications recently brought in by Microsoft for its customers bring its cyber safety offering closer to those of NortonLifeLock and Avast and are likely to further consolidate the owner of the Windows operating system as a competitor going forward.
In January 2022, the CMA launched its phase 1 investigation into the NortonLifeLock, Avast deal.
The regulator claimed that the closing of the deal would lessen competition in the market. In March 2022, the CMA recommended the proposed merger for a thorough phase 2 investigation to examine the concerns in more detail.
However, the CMA concluded during the phase 2 investigation that McAfee and other suppliers of cyber security software rather significantly compete with the merging NortonLifeLock and Avast.
CMA inquiry group chair Kirstin Baker said: “Millions of people across the UK rely on cyber safety services to keep them safe online.
“Phase 2 investigations allow us to explore concerns identified in our initial review in more detail, as we gather further information from the companies involved and other industry players.
“After reviewing the evidence in an in-depth review, we are now satisfied that this deal won’t worsen the options available to consumers. As such, we have concluded that the deal can go ahead.”