Diebold's $1.8 Billion Acquisition of Wincor Nixdorf Could Impact UK Competition-Regulator
August 19 2016 - 3:14AM
Dow Jones News
By Ian Walker
LONDON--The U.K. Competition and Markets Authority said Friday
that the completed $1.8 billion acquisition by U.S.-based cashpoint
supplier Diebold Inc. (DBD) of its German peer Wincor Nixdorf AG
(WIN.XE) may lessen competition in the U.K., and is asking Diebold
to offer a solution to address its concerns.
The U.K. regulator said the companies compete closely in the
supply of customer-operated ATMs in the U.K. with only one other
credible competitor and limited prospect of other companies
entering the U.K. market in the near future.
Diebold has until Aug. 26 to offer proposals to resolve the
issues. However, if none are offered, or those given don't satisfy
the CMA's concerns it will refer the merger for an in-depth Phase 2
investigation.
"This merger would reduce the number of credible competitors in
the market from three to two. Based on our initial investigation,
this reduction in the number of credible bidders for the supply of
ATMs could significantly reduce customers' ability to obtain
competitive bids," Sheldon Mills, senior director of mergers, and
the decision maker in this case, said.
"These concerns warrant an in-depth investigation which we will
start shortly, unless the companies can offer undertakings to
address these concerns," she added.
Diebold agreed to buy Wincor Nixdorf in a cash and share deal
last November and the deal completed on Monday.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
August 19, 2016 02:59 ET (06:59 GMT)
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