ATM suppliers told to outline measures to address competition concerns

The Competition and Markets Authority (CMA) said it will look to open an in-depth competition investigation into the planned deal between Diebold and Wincor Nixdorf "unless the companies can offer undertakings" to address its concerns that the merger "could lead to a substantial lessening of competition in the supply of customer-operated ATMs in the UK".

The CMA has already conducted an initial investigation into the proposed merger. It has concerns that the deal would leave "only one other credible competitor supplying such ATMs in the UK", and just a "limited prospect" of new competitors entering the market.

The CMA has taken its stance despite the Diebold/Wincor transaction already having received regulatory clearance in other countries. The regulator said, though, that "the competitive situation in the UK could differ from other countries, for example in relation to the number of providers and the barriers facing other companies trying to enter the market".

Diebold has until 26 August to suggest remedies that would address the CMA's concerns. The proposed merger will be subject to an in-depth investigation by the CMA if the company does not offer undertakings or if the regulator does not accept them.

Sheldon Mills, senior director of mergers at the CMA, said: "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. These concerns warrant an in-depth investigation which we will start shortly – unless the companies can offer undertakings to address these concerns."