Experian PLC (LON:EXPN) slipped lower on Friday after news the UK competition regulator has given the firm a week to propose measures to ensure its takeover of ClearScore does not harm consumers or face a full competition inquiry.
In a statement on its website, the Competition and Markets Authority said it is concerned that the FTSE 100-listed credit checking firm’s £275mln takeover of its smaller rival could make the merged company less inclined to innovate to help people understand their finances.
READ: Experian buys upstart rival ClearScore for £275mln
The regulator said: "ClearScore and Experian are the first and second-largest providers of free credit score checking in the UK.
“Experian is also the largest paid credit score checking provider. Millions of people in the UK use the companies' services each year to check their credit scores, understand their finances, and choose loans and credit cards online."
The regulator gave the two companies until July 27 to offer remedies to its concerns before being referred for an in-depth phase 2 competition investigation.
Experian announced the takeover of ClearScore - which was founded in July 205 - in March.
In late morning trading, Experian shares were 0.2% lower at 1,929p.