News

Cardtronics, DirectCash merger gets provisional OK from UK authority

September 5, 2017

Based on an in-depth, independent investigation, the Competition and Markets Authority in the U.K. has provisionally cleared the acquisition of ATM provider DirectCash Payments by Cardtronics, according to a press release from the authority.

The CMA began its investigation into the merger in January and, in May, referred the case for a phase 2 inquiry by an independent group of panel members. The group considered whether the merger would reduce competition and result in higher surcharges at pay-to-use cashpoints.

In its provisional findings, the inquiry group found that the availability of free-to-use ATMs and noncash payment methods will likely constrain surcharges at pay-to-use machines.

The group also found that contracts and relationships with the owners of ATM installation sites would limit incentives to increase surcharges.

And finally, the release said, the group found evidence that ATM surcharges are not set according to local competition and that the merger would be unlikely to change this situation.

Alasdair Smith, CMA inquiry chair, said in the release that the authority is now asking for views on its provisional findings and will assess all the evidence before making a final decision.

Anyone wishing to respond to the provisional findings should do so in writing by 5 p.m., Friday, Sept. 15.

Comments may be sent to the CMA byemailor by regular post: Project Manager, Cardtronics/DCP Merger, Competition and Markets Authority, Victoria House, Southampton Row, London WC1B 4AD.