Clearscore and Experian £275 million link left in doubt

The competition watchdog on Wednesday cast doubt over the £275 million merger of credit score firms Experian and Clearscore.

The Competition and Markets Authority (CMA) said the tie-up between the two could lessen competition in the sector. It added that it might also make it more difficult for new, smaller rivals to grow their businesses if the deal goes through.

Experian, one of the world’s biggest credit data firms, said it was disappointed by the CMA’s fresh findings. It added that the agreement would “help more consumers with their finances”.

Roland Green, who led a probe, said that the deal would probably have a negative effect on the services offered to customers.

The FTSE 100 company, which offers free and paid-for credit-checking services, wants to buy smaller rival Clearscore, which has become a market leader in free credit-checking tools since it launched in 2015.

Customers often use their services to see how likely they are to get a bank loan, mortgage or a credit card based on the score provided.

The CMA decided to scrutinise the proposed union more carefully in July after Experian chose not to come up with solutions to some of the concerns raised. “We will continue to engage constructively with the CMA over the weeks ahead to seek to address its concerns,” Experian said.

The watchdog should publish its final conclusions by March 11 and asked industry stakeholders to opine on the deal before then.