The UK Competition and Markets Authority (CMA) has ordered an in-depth investigation into the recently concluded $1.8bn merger between cashpoint makers Diebold and Wincor Nixdorf.
The recent move follows CMA deadline of 26 August, whereby Diebold was asked to offer proposals to resolve the competition concerns related to the UK market, failing which, the merger will be referred for an in-depth phase two investigation.
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After, passing the deadline, Diebold has not offered satisfactory undertakings, subsequently the CMA has ordered a probe into the merger.
A decision on the merger will be made by a group of independent panel members supported by a case team of CMA staff, which will give its final report by 13 February 2017.
The competition watchdog noted that the proposed merger could lead to a substantial lessening of competition (SLC) in the supply of customer-operated ATMs in the UK.
The CMA senior director of mergers and the decision maker in this case Sheldon Mills said: “This merger would reduce the number of credible competitors in the market from 3 to 2.
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By GlobalData“Based on our initial investigation, this reduction in the number of credible bidders for the supply of ATMs could significantly reduce customers’ ability to obtain competitive bids.”
