Britain’s competition watchdog indicated it may block credit data company Experian’s takeover of rival ClearScore and warned the deal could stifle development of digital products that help customers understand personal finances.
Experian, a FTSE 100 company, wants to expand in Britain with the purchase of ClearScore, which provides free access to credit reports and scores, and introduces consumers to personal financial products.
Experian, the world’s biggest credit data firm, said it was disappointed by the Competition and Markets Authority’s (CMA) provisional findings.
The CMA said its Phase II investigation had found the 275 million pound ($352 million) deal announced in March would potentially harm the development of digital products.
“At this stage, the CMA’s view is that the only effective remedy is prohibition of the merger,” the watchdog said in a statement, adding that it currently believes that no other structural or behavioural remedy is likely to be effective.