Microsoft Corp. and Activision Blizzard Inc. are nearing the finish line on their $69 billion deal, but aren’t likely to close it by a Tuesday deadline, people familiar with the deal said.
The companies don’t plan to walk away from the deal and will continue seeking the final regulatory approvals needed for closing, said the people, who declined to be named as they were not authorized to speak publicly on the matter.
Microsoft and Activision declined to comment.
An April order from UK regulators bars the companies from closing the deal even though it has now received government approvals in 39 countries. The UK Competition and Markets Authority said Monday that it has held “productive” talks with the companies about a resolution, but the UK enforcer has so far maintained its veto while negotiations continue.
A violation of the UK order would lead to fines up to 5% of the companies’ combined global revenue. British enforcers could opt to change their order to allow Microsoft and Activision to close outside the UK while keeping the companies separate in the UK.
The UK discussions are expected to take several days or weeks to resolve, and the CMA has officially extended its target date on the probe to Aug. 29.
The merger agreement set July 18 as the date at which both companies could walk away, with Microsoft bound to pay Activision $3 billion if the deal is terminated.
