The UK’s Competitors and Markets Authority (CMA) has expressed considerations concerning the merger of FNZ and GBST Holdings.
The 2 fintech corporations had been alleged to unite after FNZ agreed to purchase 100% of GBST’s shares in July 2019.
However in November, the CMA began an investigation into the deal because it was frightened it would lower competitors throughout markets within the UK.
Following the preliminary investigative section, the authority discovered that “FNZ and GBST are shut opponents in what’s a concentrated market with few different important suppliers.
“Smaller or much less well-established corporations discover it troublesome to enter or scale up due to the dangers and reluctance of consumers to vary suppliers.”
Clients may lose out
Joel Bamford, senior director of mergers on the CMA, stated: “Funding software program is important to the operation of retail funding platforms that are utilized by many traders within the UK.
“FNZ is already the most important 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 shedding out.”
The regulator has given FNZ a mere 5 working days to deal with its considerations.
Failure to take action will lead to an additional investigation into the merger, the CMA stated.