UK authority fears substantial lessening of competition due to Diebold Nixdorf combo; proposes remedies
The U.K. Competition and Markets Authority has published provisional findings in connection with the business combination of Diebold Inc. and Wincor Nixdorf.
A press release from the CMA said that an independent panel had provisionally found that the merger risks a "substantial lessening of competition" in the market for the supply of ATMs in the U.K.
The CMA expressed two concerns in the press release: firstly, that with only NCR as the other significant supplier, competitive constraint on the merged companies is weak; and secondly, that any expansion of suppliers into the market "would be unlikely to occur within a time frame or on a sufficient scale to prevent the loss of competitive constraint."
The CMA has issued a notice of possible remedies it could implement if the authority still believes the merger may be expected to lead to an SLC when it makes its final decision.
A separate press release from Diebold Nixdorf said that the company was pleased that the CMA has not called into question the global transaction and integration of the businesses outside the United Kingdom.
"Any remedies required to preserve competition in the United Kingdom will involve the least costly and intrusive remedies needed," the release said.
Additionally, Diebold Nixdorf said it was pleased that the CMA is willing to consider both remedies "to address and resolve their review as expediently as possible."
This process is expected to be completed during the first half of 2017.
All information relating to this merger investigation can be found on the CMA case page. Anyone wishing to respond to the notice of possible remedies should do so by no later than Jan. 10. 2017.
Responses may be emailed to firstname.lastname@example.org or sent via post to: Project Manager, Diebold/Wincor merger inquiry, Competition and Markets Authority, Victoria House, Southampton Row, London WC1B 4AD.