Lovefilm’s acquisition gets the green light

The acquisition of Amazon Europe’s DVD rental business by Balderton, DFJ Esprit and Index portfolio company Lovefilm has been cleared for completion by the financial authorities.

The Amazon division was initially acquired by Lovefilm in February.

Regulators said that though it had competition concerns as a result of the merger, Lovefilm had too many competitors in the video content space to have any incentive to worsen its customer proposition.

Lovefilm, which is Europe’s largest online DVD rental company, was formed through the merger of Lovefilm International and Video Island in April 2006.

Amazon DVD rental customers will now have access to Lovefilm’s collection of more than 65,000 titles, which include a film download service and interactive film reviews.

Amazon Europe will make a cash investment into Lovefilm as part of the merger, becoming its largest shareholder.

Lovefilm appointed Goldman Sachs to look at a potential £100m flotation of the company last year.