The move comes in the wake of Diebold’s failure to address the authority’s competition concerns about the supply of customer-operated automated teller machines (ATMs) in the UK.
In its initial investigation, the CMS found that the merger could lead to a significant reduction in competition in the ATM market.
The watchdog said that there is limited scope for other companies to enter the UK market in the near future.
Though the deal has been approved by competition authorities in many other countries, the CMA considered the impact of the merger in the UK due to difference in competition levels.
CMS Mergers Senior Director Sheldon Mills said: “This merger would reduce the number of credible competitors in the market from 3 to 2.
“Based on our initial investigation, this reduction in the number of credible bidders for the supply of ATMs could significantly reduce customers’ ability to obtain competitive bids.”
The deadline set by CMS for a final decision on the merger is 13 February 2017.
It said: “A decision on the merger will be made by a group of independent panel members supported by a case team of CMA staff.”
In November 2015, financial software and ATM maker Diebold has agreed to acquire Wincor Nixdorf in a deal that will value the German provider of IT solutions and services to banks at around $1.8bn (€1.7bn).
After the completion of the transaction, the combined company will be named Diebold Nixdorf, with headquarters in North Canton and Paderborn, Germany.
Image: CMA refers cashpoint merger for in-depth investigation. Photo courtesy of Competition and Markets Authority.
