Experian, one of the top providers for free credit checking services in Britain arranged to buy the other top provider, ClearScore, for £275 million. Following the deal, the UK’s Competition and Markets Authority (CMA) made plans to open up an in-depth investigation if the two could not ease competition concerns.
On July 20, the CMA announced that the merger had been deemed worthy of concerns over competition in the market and would be sent to a “phase 2” investigation unless the two companies could come up with reasons as to why they should be allowed to continue with the merger. Experian and ClearScore had a July 27 deadline to do this.
Experian told Reuters it was “reviewing the CMA’s comments and would make the case as to why the deal should be approved.”
On July 31, the CMA announced that it would be opening a more in-depth investigation in to the deal. This came after ClearScore declined to offer reasons as to why the deal should be allowed.
“We continue to believe the proposed acquisition is a good move for innovation, competition and consumer choice in the UK. As such, we will continue to work constructively with the CMA to make the case as to why the transaction should be approved,” a spokesperson from Experian told Reuters.
