In the wake of official findings by the U.K. Competition and Markets Authority, Diebold Nixdorf Inc. has announced in a press release that it will seek to divest its legacy Diebold Inc. business in the U.K.
After a review launched in June, the CMA published provisional findings in December, calling for a structural remedy to address its concerns about potential anticompetitive effects arising from the combination of Diebold Inc. and Wincor Nixdorf.
The combination left only two major players in the U.K. market — Diebold Nixdorf and NCR Corp. — a situation that the CMA feared would lead to higher costs and a lessening of consumer access to ATMs.
The company said in the release that:
Diebold Nixdorf is now actively pursuing a divestiture of its legacy Diebold business in the U.K. with a potential purchaser. The company believes it can satisfy the CMA's requirements and conclude this transaction as soon as practicable.
Despite this outcome, the benefits of the combination "clearly outweigh" the impact of a U.K. divestiture, the release said.
Diebold and Wincor Nixdorf brands and operations the U.K. have remained separate throughout the CMA investigation.
Elsewhere, though, Diebold Nixdorf has proceeded with its multiyear business transformation program, DN2020, the release said. In a Feb. 28 Investor Day presentation, Diebold Nixdorf management described how the program will align the combined company around shared strategies and goals.
Divestiture of the Diebold legacy business in the U.K. will not affect the Diebold Nixdorf earnings outlook for 2017, the release said.