VTech's acquisition of LeapFrog provisionally cleared by CMA

CMA has found the merger will not lead to competition concerns
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Independent panel members involved in the investigation by the Competition and Markets Authority has provisionally found that the merger may not be expected to result in a substantial lessening of competition in the supply of learning toys for 0-5 year olds. 

The investigation found that whilst the companies were close competitors, there are numerous other credible suppliers, and VTech and LeapFrog were not each other’s closest competitor.

“We looked carefully at competition in the evolving and innovative toy industry, and in particular at learning toys and child tablets, to make sure this merger would not reduce choice for consumers or lead to higher prices," explained Philip Marsden, inquiry chair.

"We are satisfied that even after the merger there will be a sufficient variety of learning toys for 0-5 year olds available. We also found that the child tablet market is evolving rapidly with increasing choice available for people who want to buy electronic devices and content suitable for their children. We’re now asking for views on these provisional findings and will assess all the evidence before making a final decision."

Related

VTech acquires LeapFrog for $72m

"The acquisition will allow us to offer the broadest portfolio of products that enhance the education and development of children,” said Allan Wong, VTech’s chief executive officer.

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