The UK’s Competition and Markets Authority (CMA) has referred Cardtronics’ acquisition of rival ATM provider DirectCash Payments (DCP) for a phase 2 investigation.
The phase 2 of investigation comes after Cardtronics failed to offer undertakings by 10 May 2017. In this phase, the regulator will refer the merger for an in-depth investigation.
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CMA said: “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 27 October 2017.”
Following its initial investigation, the regulator believes that it may be the case in which a relevant merger situation has been created, in which enterprises carried on by Cardtronics have ceased to be distinct from enterprises carried on by DirectCash Payments.
The creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within a market or markets in the UK for goods or services, such as the supply of automated teller machines (ATMs) to ATM users on a local basis, the regulator added.
On 3 May 2017, CMA decided to conduct an investigation into the merger deal, believing that this merger may be expected to result in a substantial lessening of competition within a market or markets in the country.
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By GlobalDataUnder the deal, which was signed on 3 October 2016, Cardtronics agreed to purchase DirectCash Payments for $460m.
