According to a preliminary draft timetable for its merger with US software company NortonLifeLock, on September 9, Avast is expected to halt trading in its shares. It would then delist them, and the US firm would issue new ones. This is according to a report by the UK’s Competition and Markets Authority (CMA), which is looking into the merger.
NortonLifeLock and Avast agreed on a takeover last August, with the US firm expected to pay USD 8.6 billion (CZK 208.6 billion) for Avast. The new company is to be based in Prague and Tempe, Arizona. It plans to offer services to more than 500 million users.
The British regulator is the latest not fully to approve the merger, but on Wednesday, it gave preliminary approval to the acquisition. According to its published timetable, the CMA is expected to issue a final decision by September 8, the dates are still subject to change if specific processes are delayed.
Shares are rising
Avast is expected to halt trading of its shares a day later and then delist them on September 12. NortonLifeLock expects to issue new shares and settle the proposed merger.
At around 10 a.m. Wednesday on the Prague Stock Exchange, Avast shares were up 38%, trading around CZK 200 per share, according to Cyrrus analyst Tomas Pfeiler. He said this was related to the CMA’s opinion.
“The way to complete the transaction is clear at the moment. The CMA’s decision came a little faster than expected. Initial expectations were for the opinion to be issued by the end of this year,” he added.