Experian has scrapped its proposed £275m takeover of online credit referencing and financial services firm ClearScore after concluding that the deal would either be blocked or made financially unviable by the competition regulator.
The acquisition was first announced in March last year, with ClearScore due to become part of Experian’s UK Consumer Services division.
However, late last year the Competition & Markets Authority raised objections, claiming that deal could “stifle product development and impact customers”.
In a statement this morning, Experian said: “Further to the provisional findings published by the CMA, and taking into account subsequent interaction [with the regulator], Experian does not believe that the CMA will approve the proposed acquisition of ClearScore on satisfactory terms, despite the dynamism and competitive nature of the market, and the customer benefits arising from the proposed transaction.
“Experian and ClearScore’s shareholders have therefore taken the decision to abandon the proposed transaction.”
Launched in 2015 to take on the likes of Experian, Equifax and Callcredit, the company is backed by Blenheim Chalcot and QED Investors.
The founders include former Capital One marketing chief Justin Basini, ex-Capital One president Nigel Morris and former Google UK managing director Dan Cobley.
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