By Oliver Smith on 28th February 2019
The UK's No.1 and No.2 credit agencies won't be merging anytime soon.
The deal, which has been under scrutiny by the Competition and Markets Authority (CMA) since it was announced last March, has looked increasingly uncertain as the months have dragged on.
In November the CMA warned the deal: “could stifle product development and impact customers.”
Experian therefore yesterday decided to pull out of the takeover, rather than risk being rejected in the coming months.
“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,” said Experian.
The deal at the time would have seen the No.1 and No.2 credit agencies in the UK combine, a fact that drew notable criticism from the industry.
ClearScore CEO and cofounder Justin Basini said it would be a “return to Plan A” for the company, which will now focus on offering more financial products and deals to its customers by partnering with various providers.
“Over the next year we plan to bring exciting new innovations to market which will help consumers address their needs across their financial lives, while also investing in new areas to further broaden our offering.”
In many ways that statement confirms the CMA’s concerns, without the ability to buy up its smaller, more popular rival, Experian will now have to innovate and compete.
A challenging day for the FTSE 100-listed £17bn company, but maybe even more so for ClearScore.