Game Looks Set To Eat Gamestation

It’s not all signed, sealed and delivered yet, but the way looks clear for UK High Street video game retailer Game to acquire one of its competitors,Gamestation.   The Competition Commission yesterday gave provisional approval to the dealafter concluding that it wouldn’t significantly lessen the competition in the market.   Game and Gamestation are the largest UK video game retailers, and the deal, worthy around $150million, was announced in May. But the Office of Fair Trading asked the Competition Commission to investigate and determine the impact on other retailers.  However, it proved to be an even 2-2 vote among the Commission members, until the chairperson, Diane Coyle, cast her vote in favor of the clearance. That split decision means that the Commission isasking for views from all interested parties before the end of the year.   “This is a finely balanced verdict but our provisional conclusion is that we do not believe this acquisition willgive the merged company the opportunity significantly to raise prices or reduce service for new or pre-owned products, or to cut trade-in prices paid to customers,” said Coyle."…ifthe merged company was to raise prices, for example, we think it is likely that customers could move a significant amount of their business to alternative retailers such as independents, high-streetretailers, supermarkets and internet retailers."