Cardtronics, a provider of automated consumer financial services, has announced that its $460m acquisition of DCPayments’ UK operations secured approval from the UK’s Competition and Markets Authority (CMA).
The permission was granted after the CMA wrapped up its phase 2 inquiry over the competition concerns of the deal.
After the preliminary probe, the watchdog concluded that it may be the case in which a relevant merger situation has been created, in which enterprises carried on by Cardtronics have ceased to be distinct from enterprises carried on by DirectCash Payments.
Additionally, when the UK watchdog asked Cardtronics to offer undertakings by 10 May 2017 to address the substantial lessening of competition regarding supply of ATMs in UK, the company failed to comply with the CMA’s demand.
Subsequently, the CMA referred the case for a phase 2 investigation, in which the merger was referred for an in-depth investigation.
Now, the CMA permission has been obtained, Cardtronics will start working through the process of integrating the existing UK operations of Cardtronics and DCPayments.
The deal, which was originally announced in October 2016, will help Cardtronics to further expand its footprint in Canada and the UK. It will also give Cardtronics access to new markets such as Australia and New Zealand.
Cardtronics CEO Steve Rathgaber said: “Our proposed combination with DCPayments will enhance our global presence by adding Australia as an anchor market in Asia-Pacific, in addition to New Zealand. It also would grow Cardtronics’ existing ATM estates in Canada, the United Kingdom and Mexico.
“The combination will further position us to be the preferred global provider of ATM solutions to retailers and financial institutions.
“This acquisition would broaden our exposure to helping financial institutions re-evaluate their physical presence as part of the bank transformation trends we are seeing worldwide.”