VTech’s US$72m LeapFrog takeover gets go-ahead from British regulator
Competition and Markets Authority says merger may not be expected to result in a substantial lessening of competition in the supply of learning toys
Britain’s Competition and Markets Authority (CMA) has provisionally cleared the merger between Hong Kong-listed VTech Holdings, the world’s biggest maker of electronic learning toys, and US rival LeapFrog Enterprises.
According to the regulator, an independent panel of investigators 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 years old, children tablets and content or future innovation in toys.”
It described VTech and LeapFrog as the two leading suppliers of learning toys as well as children’s tablets and electronic content in Britain.
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
“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,” inquiry chairman Philip Marsden said.