The Competition and Markets Authority (CMA) revealed its intention to launch an in-depth merger investigation on Tuesday, July 31, stating that Experian had failed to address concerns identified in an initial probe.
Experian announced plans to acquire ClearScore for £275 million (US$360.9 million) earlier this year in a bid to expand its UK business and access ClearScore’s 6 million British members.
However, the pair are the two largest credit-checking firms and each other’s main competitors, and the CMA has concerns about the deal. It claimed the merged company “would be less likely to innovate to help people better understand their finances, potentially leading to people paying more for credit cards and loans.”
Experian has chosen not to offer proposals to address the CMA’s concerns and so the merger will now be referred for an in-depth investigation by an independent group of CMA panel members. The deadline for the final decision is January 14, 2019.
Full Content: UK Government
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