28th Nov 2018 08:12
LONDON (Alliance News) - Experian PLC said Wednesday it is "disappointed" the UK Competition & Markets Authority thinks its acquisition of ClearScore would harm competition.
The FTSE 100-listed consumer credit agency said it continues to "strongly believe" the acquisition of ClearScore - which gives people free access to their credit scores - will have a "positive impact" on competition.
The UK competition watchdog said Experian's takeover of its "start-up rival could stifle product development and impact customers".
Experian believes the acquisition would allow it to "help more consumers".
The FTSE 100 credit reporting firm said: "We also believe we will be able innovate more and better through the combination of the parties' complementary assets and innovation cultures.
"We will continue to engage constructively with the CMA over the weeks ahead to seek to address its concerns ahead of publication of the CMA's final report early in the new year."
The CMA believes the proposed move is "likely to result in less intense competition, potentially harming the continued development of digital products which help people understand their personal finances".
The regulator said, currently, the competition between the two firms is "helping to drive quality and innovation in both free and paid-for credit checking services as they develop their products to vie for customers".
If you were to take one of the companies out of the market, however, the findings from the CMA's phase two investigation showed "the merger would substantially reduce the pressure to continue to develop innovative offers and to make other improvements in services".
The CMA is now asking for views on its findings by December 19, and will assess all the evidence before making a final decision. The deadline for its final report is March 11 next year.
Back in mid-March, Experian agreed to acquire fast-growing rival ClearScore for an initial GBP275 million in addition to a deferred earn-out dependent on future performance.
In late May, however, the CMA began an investigation into potential competition concerns regarding the deal. The watchdog gave the two firms time to "offer solutions" to resolve its concerns. When they failed to do so, the deal was referred to a more in-depth phase two investigation, which began in July.
Experian shares were up 0.1% at 1,868.50 pence at the open in London on Wednesday.
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