The move represents a stunning turnaround for a deal that was once thought over after running up against concerns from antitrust regulators, including an initial veto from the UK in the spring. 

It gained unexpected momentum after Microsoft beat the US Federal Trade Commission’s court challenge over the deal. The European Union cleared the deal with behavioural remedies in May. That left the CMA as the remaining regulatory hurdle. 

“This is a new and substantially different deal, which keeps the cloud distribution of these important games in the hands of a strong independent supplier, Ubisoft, rather than under the control of Microsoft,” said Colin Raftery, a senior director of mergers at the CMA. 

The deal provides Xbox chief, Phil Spencer, the cornerstone to a plan to boost Microsoft’s lagging mobile games business, albeit months later than the company had hoped. 

Mr Spencer must now execute on a strategy he unveiled around the deal in a landscape where the market has shifted, including the receding focus on the metaverse, which Microsoft originally listed as a driver of the acquisition.

The CMA’s approval came with a warning to other would-be acquirers not to delay offering concessions. “It would have been far better, though, if Microsoft had put forward this restructure during our original investigation,” the CMA’s chief executive Sarah Cardell said. 

“This case illustrates the costs, uncertainty and delay that parties can incur if a credible and effective remedy option exists but is not put on the table at the right time.” 

The CMA had previously vetoed the deal, saying it could result in higher prices, fewer choices and less innovation for UK gamers. 

Bloomberg