The merger between Experian and ClearScore could be blocked after the UK’s competition watchdog ruled that the deal could reduce competition in the market.
Earlier this year Experian announced it had agreed to acquire financial technology firm ClearScore in a mega deal worth £275 million.
ClearScore matches individuals to personal financial products, offering free credit reports, scores and personal financial education, both online and through mobile devices.
Since its launch, the company has enrolled over six million members in the UK through its free membership model.
But the Competition and Markets Authority (CMA) has now raised concerns that the merged company would be “less likely to innovate to help people better understand their finances, potentially leading to people paying more for credit cards and loans”.
The watchdog has given both businesses until 27 July to offer solutions to resolve its concerns. Failing that, the merger will be referred for an in-depth phase 2 investigation.