Diebold Incorporated (Diebold) is a US company and provider of financial self-service (FSS) products including automatic teller machines (ATMs – also referred to as cashpoints). Wincor Nixdorf (Wincor) is a German company which also provides FSS products including ATMs.
Diebold acquired Wincor on 16 August 2016 with the new company renamed Diebold Nixdorf, Incorporated.
A group of independent panel members at the Competition and Markets Authority (CMA) has provisionally found that the merger risks a substantial lessening of competition (SLC) in the market for the supply of customer-operated ATMs in the UK.
The CMA is concerned that the market for customer-operated ATMs is highly concentrated, with only 3 significant suppliers: NCR, Wincor and Diebold. Evidence provided to the inquiry suggests that, outside of NCR, there is a weak competitive constraint on the merged companies.
The group also found that any expansion of suppliers on the periphery of the market would be unlikely to occur within a time frame or on a sufficient scale to prevent the loss of competitive constraint arising from the merger. As a result, the merger may be expected to result in higher prices and/or a loss of quality.
The CMA is today also issuing a notice of possible remedies which outlines measures the CMA could take if it still believes the merger may be expected to lead to an SLC when it makes its final decision.
Martin Cave, Inquiry Chair, said:
“We looked carefully at the market forces influencing the supply of ATMs in the UK. That NCR is the only other substantial UK supplier of ATMs was a significant factor that underpinned the CMA’s investigation.
“It is important to protect against the risk of weakened competition in the supply of cashpoints which could lead to reduced quality and increased prices.
“The group is now inviting responses to its provisional findings and remedies notice, and will continue to assess all the evidence before it makes its final decision.”
