Experian calls off £275m ClearScore deal

Experian has pulled out of its £275m takeover of ClearScore after saying it believes that the Competition and Markets Authority (CMA) won’t let the deal go ahead.

In November, the CMA said Experian’s takeover of start-up rival ClearScore could “stifle product development and impact customers”.

In a statement this morning, Experian said: “Further to the Provisional Findings published by the UK Competition and Markets Authority on 28 November 2018 and taking into account subsequent interaction with the CMA, Experian does not believe that the CMA will approve the proposed acquisition of ClearScore on satisfactory terms, despite the dynamism and competitive nature of the market, and the customer benefits arising from the proposed transaction. Experian and ClearScore’s shareholders have therefore taken the decision to abandon the proposed transaction.”

Blenheim Chalcot initially revealed it was to sell its fintech business ClearScore, to Nottingham-based Experian for £275m in March.

Experian and ClearScore are the two largest credit checking firms in the UK. Experian offers both free and paid-for credit checking services, while ClearScore, which entered the market in 2015, quickly became market leader in free credit checking tools for customers. Both companies also provide people using these services with comparisons of third party lenders such as credit card providers and banks.