CMA refers Diebold/Wincor merger for in-depth investigation

CMA refers Diebold/Wincor merger for in-depth investigation

The Competition and Markets Authority has referred the $1.8 billion Diebold/Wincor merger for an in-depth investigation after the US ATM manufacturer failed to resolve competition concerns about the supply of customer-operated cash machines in the UK.

The watchdog suspects that Diebold's takeover of Germany's Wincor Nixdorf will substantially reduce competition in the UK ATM market, leaving only NCR as a credible competitor.

The CMA first raised its concerns earlier this month, giving Diebold until 26 August to offer proposals to address the situation.

"As Diebold has not offered satisfactory undertakings, the CMA will therefore now refer the merger," says the watchdog.

The referral is at odds with action taken by competition authorities in other countries, but the CMA says that the UK has a different landscape in relation to the number of providers and barriers to entry into the market.

A decision on the merger will be made by a group of independent panel members supported by a case team of CMA staff. The deadline for the final report is 13 February 2017.

Comments: (3)

A Finextra member
A Finextra member 30 August, 2016, 15:24Be the first to give this comment the thumbs up 0 likes

Diebold provided virtually no competition to Wincor and NCR in the UK, ask anyone in the UK ATM industry. So what's the beef of the CMA?
Meantime the rest of the world has moved on and approved it.

Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India 31 August, 2016, 14:49Be the first to give this comment the thumbs up 0 likes

Is CMA taken this action in light of EU puts Apple's penalty for Ireland taxation penalty? or wants to delay the M&A process ??

A Finextra member
A Finextra member 31 August, 2016, 14:531 like 1 like

@Hitesh
This has been under review since before the EU's bite out of Apple.

sponsored

Embracing Open Banking with Secure and Interconnected APIs

Trending Stories