CMA to review its block on FNZ’s £150m GBST deal
The FNZ offices: deal could be back on
Competition watchdogs have admitted they may have made errors when blocking financial services technology provider FNZ’s £150 million acquisition of a rival Australian firm.
FNZ, based in Edinburgh, has appealed against the Competition and Market Authority’s decision which halted its merger with GBST.
The deal was confirmed in November 2019 after getting the go-ahead from the Australian supreme court of New South Wales.
But following an inquiry into competition concerns in the UK the CMA ordered FNZ to sell the business.
FNZ sits behind the companies such as Aviva and Standard Life Aberdeen, while GBST provides technology for Aegon and Novia.
The watchdog suggested the acquisition could lead to “higher prices, fewer options and less innovation” in the UK platform tech space.
FNZ last month asked the Competition Appeal Tribunal to review the CMAs decision, claiming it failed to “properly define the relevant market”.
The competition watchdog is understood to have admitted it has “identified certain potential errors” in its market share calculations, according to Money Marketing, and will ask the CAT to send the case back to it so it can reconsider its view.
FNZ was established in New Zealand in 2003 but since 2007, it has been based and headquartered in Edinburgh.
GBST is an Australian software company which was listed on the Australian Stock Exchange.