Desmond’s MCD organisation and American partners Live Nation are looking to acquire a 53% share in the 10-venue chain, which includes London’s Brixton Academy and Shepherds Bush Empire.
According to a well-placed source, the Office of Fair Trading are concerned that this would “substantially lessen competition” in sectors of the capital’s live music business.
The findings of the Competition Commission’s investigation into the proposed deal will be made known in February 2007.
The better news for Desmond and his cross-channels rivals is that the Labour government has rubbished reports that they’re planning to ban alcohol company sponsorship of festivals.
This could have had a serious knock-on effect for Irish festivals, whose concern now is the 13.5% VAT levy on tickets.