Regulators have raised competitors issues over a Scotland-based monetary know-how agency’s takeover of an Australian rival.
FNZ, which relies in Edinburgh, acquired monetary software program firm GBST in November in a deal which valued the Australian agency at at £152m.
However the Competitors and Markets Authority (CMA) mentioned it was involved that the merger may lead to UK buyers dropping out on account of greater costs, fewer choices and much less innovation.
Each corporations present software program to retail funding platforms within the UK.
In an announcement, the CMA mentioned its preliminary investigation had discovered that FNZ and GBST have been “shut opponents in what’s a concentrated market with few different vital suppliers”.
It added: “Smaller or much less well-established corporations discover it tough to enter or scale up due to the dangers and reluctance of consumers to vary suppliers.”
Joel Bamford, senior director of mergers on the CMA, mentioned: “Funding software program is crucial to the operation of retail funding platforms that are utilized by many buyers within the UK.
“FNZ is already the biggest provider and has bought a longtime rival who’s trusted by many platforms, with few remaining opponents left out there.
“We’re subsequently involved that this transaction may result in clients dropping out.”
FNZ has been given 5 working days by the CMA to handle its issues. If it fails to take action, the deal will probably be referred for an in-depth investigation.
FNZ mentioned: “FNZ appears ahead to persevering with to work with the CMA to handle their issues.”