The British government's competition regulator is investigating whether a deal by British Sky Broadcasting Group to buy computer and electronic hardware manufacturer Amstrad is anticompetitive.
BSkyB announced recently that it planned to purchase Amstrad for $253 million in cash. The pair already has a close relationship, with Amstrad supplying about 30% of the set-top boxes purchased by Sky in the year to June 30.
The Office of Fair Trading said it was considering whether the deal would 'result in a substantial lessening of competition.' The OFT can refer the case to the Competition Commission for a full investigation.
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