Experian has announced that it has abandoned the £275 million acquisition of ClearScore.
In a statement Experian said “Further to the Provisional Findings published by the UK Competition and Markets Authority (CMA) on 28 November 2018 and taking into account subsequent interaction with the CMA, Experian does not believe that the CMA will approve the proposed acquisition of ClearScore on satisfactory terms, despite the dynamism and competitive nature of the market, and the customer benefits arising from the proposed transaction. Experian and ClearScore’s shareholders have therefore taken the decision to abandon the proposed transaction.”
Experian and ClearScore provide credit-score checking and financial product comparison services in the UK. These services allow people to understand their finances and choose loans and credit cards online.
In November 2018, the Competition and Markets Authority (CMA) published provisional findings as part of its in-depth, Phase 2, merger inquiry. These set out concerns that the merger of 2 of the largest credit-score checking firms in the UK could result in less intense competition in the sector.
The CMA provisionally found that the merger could stifle product development, by substantially reducing the pressure to continue to develop innovative offers and to make other improvements in services, and so negatively impact consumers.