The takeover of a major music festival is being investigated by competition watchdogs.

The Isle of Wight Festival's agreed takeover by global entertainment group Live Nation is being looked at by Britain's Competition and Markets Authority (CMA) amid potential concerns the deal would create a “substantial lessening of competition".

Live Nation, which owns a portfolio of 85 festivals across the UK including T in the Park and Creamfields, became the majority shareholder in the Isle of Wight Festival in March through LN-Gaiety - its UK joint venture with music mogul Denis Desmond's Gaiety Investment which was the company’s sixth takeover deal this year.

The authority said it was looking at launching an investigation into whether Live Nation's move to snap up a controlling stake in the Isle of Wight Festival would lead to a "substantial lessening of competition".

Although the takeover has been agreed, the deal will not be completed until signed off by the competition watchdog.

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The festival which brings around £17million to the Isle of Wight economy every year is currently being run by agent and promoter John Giddings, of Solo Promotions, following the sale.

Mr Giddings said: “After 15 hugely successful and glorious years, we have been looking at how we can elevate and take Isle of Wight Festival to the next level.

“This partnership with Live Nation will give us the ability to access the company’s scale and talent pool, bringing more acts and a better experience to the UK.”

Greg Maffei, chairman of Live Nation UK, added: “John Giddings and the Solo team have developed the Isle of Wight Festival to be one of the most iconic festival brands in the world.

“It’s fantastic to be able to add it to our growing and diverse portfolio of festivals.”

The Isle of Wight Festival is expected to attract more than 42,000 people this year to Seaclose Park on from Thursday, June 8 to Sunday, June 11 with acts at the June event including DJ David Guetta, Sir Rod Stewart, indie-pop group Bastille and singer-songwriter George Ezra.