The UK’s Cabinet Office said there are certain conditions the companies would need to abide by including setting up a “National Security Committee” to oversee sensitive work that relates to or could affect national security.
A separate investigation into the deal from the Competitions and Markets Authority (CMA) is ongoing after competition concerns were not addressed immediately.
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James Robinson, senior analyst at Assembly Research said: “Halfway there? Not quite, there's still the CMA's ongoing Phase 2 review to navigate. The hefty Phase 1 decision highlighted three main theories of harm, as well as insufficient evidence submitted so far on the benefits to competition and consumers of the tie-up
“The CMA will want to be satisfied by the evidence and see a meaningful set of commitments to offset the issues it has identified. While the transaction still has every chance of going ahead, it looks like it's going to be a busy summer for the parties.”
Kester Mann, director of consumer and connectivity at CCS Insight said: “Of course, the main hurdle remains its potential impact on competition, so all eyes now turn to the Competition and Markets Authority which is scrutinising multiple aspects of the deal. In particular, it is investigating the possible impact on retail pricing and wholesale choice. A decision is not expected until around mid-September.”
