Platform engine FNZ must sell its recent acquisition of competitor GBST, but will have the right to repurchase a “narrower package of assets”, according to the final reassessment report from the Competition Markets Authority (CMA).
The CMA reassessed the deal following FNZ appealing to the Competition Appeal Tribunal against the CMA’s original ‘Phase 2’ decision to block its £150m acquisition of GBST announced in November 2019.
A group of independent CMA panel members agreed with the initial assessment that the purchase of GBST by FNZ could substantially reduce competition on the sector due to them both being providers of retail investment platform solutions with “few other significant suppliers” that “offer effective and competitive alternatives.”
However, the reassessment said that GBST’s capital markets business does not currently compete with FNZ in the UK and therefore could be considered for acquisition separately.
FNZ will now have to sell GBST to