The Pearl Group's £4.98bn acquisition of Resolution could take another three months to complete.
In a statement to the stock exchange, Resolution says Pearl needs more time revising its change of control application and the takeover is “not now likely” to be effective by mid-March.
Pearl’s takeover was originally expected to be completed on 4 February, but FSA discussions pushed the deal back by over a month.
“The FSA has up to three months to consider any revised change of control application submitted by Pearl, but it has indicated that it would in practice seek to conclude its change of control process in a shorter period,” the statement reads.
“Should the FSA determine that it is appropriate to impose conditions on any change of control approval; the timetable could be further extended as the FSA would provide Pearl with a period of at least 28 days to seek to agree any proposed conditions with the FSA.”
Resolution says it will ensure the acquisition is implemented as planned and remains in close dialogue with the Takeover Panel, the FSA and Pearl to meet this outcome.
The acquisition delay will not affect the deal’s terms, which will remain at 720p per Resolution share.
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