The UK’s competition watchdog is considering launching an investigation into Visa’s £247mln takeover of AIM-quoted payment company Earthport PLC (LON:EPO).
The Competition and Markets Authority (CMA) said it was looking at whether the acquisition would create a “substantial lessening of competition” in the UK.
READ: Visa trumps Mastercard as it ups Earthport offer
It has invited interested parties, including the two companies involved, for comments.
If the CMA does find that the tie-up may affect competition, it could launch a formal Phase 1 investigation.
That normally takes 40 days, after which, if the CMA still thinks there is a chance that consumers stand to lose out from the merger, it would launch a more in-depth Phase 2 investigation, which can take up to six months.
Earthport shares were steady at 36.5p on Thursday morning, suggesting that the market is sure the deal will be waved through.