Avast PLC skyrocketed 42% to 680.8p after the UK Competition and Markets Authority (CMA) provisionally cleared NortonLifeLock Inc’s £6bn purchase of the company following a phase two investigation.
The watchdog concluded the merger “is not expected to give rise to a substantial lessening of competition in the UK”.
Kirstin Baker, CMA chair, said: “After gathering further information from the companies involved and other industry players, we are currently satisfied that this deal won’t worsen the options available to consumers.”
“As such, we have provisionally concluded that the deal can go ahead.”
The UK’s antitrust watchdog said it will welcome responses to its provisional findings from interested parties by 24 August. The final report is due September.
NortonLifeLock said it was happy with the announcement and intends to carry on working with the CMA and Avast to accelerate the issuing of the final report.