CMA refers Experian and ClearScore deal for “in-depth” investigation

Experian announced it would acquire ClearScore in March this year. The CMA found that the two companies are "the largest credit reference agencies the UK and each other’s main competitors".

In its enquiry into the deal, the watchdog identified concerns that the merged company would be “less likely to innovate to help people better understand their finances”, potentially leading to people paying more for credit cards and loans.

As a result, the CMA said it would refer the deal for an in-depth investigation unless Experian offered "acceptable ways" to address the CMA’s competition concerns.

The regulator said Experian “has chosen not to offer proposals to address the CMA’s concerns”, so the deal will now be referred for an in-depth investigation by an independent group of CMA panel members.

In a statement, Experian said: "We have noted the comments from the CMA and are reviewing them in detail. We continue to believe the proposed acquisition is a good move for innovation, competition and consumer choice in the UK. As such, we will continue to work constructively with the CMA to make the case as to why the transaction should be approved.”

The deadline for the final decision is January 14, 2019.