Game, Gamestation merger clears first hurdle

In May, a surprise announcement brought UK gamers the news that retailer Game had bought Gamestation in an acquisition worth some £74 million (approx. $147 million).

Given that the companies are the two biggest specialist video game sellers in the UK, it was less surprising when it was announced in August that the Office of Fair Trading had referred the deal to the Competition Commission.

Today, the controversial acquisition has been given the preliminary go-ahead from the Competition Commission, which is expected to complete its inquiry and publish a full report by January 23, 2008.

Inquiry chairman Diane Coyle commented, "This is a finely balanced verdict, but our provisional conclusion is that we do not believe this acquisition would give the merged company the opportunity to significantly raise prices or reduce service for new or pre-owned products, or to cut trade-in prices paid to customers."