The UK Competition and Markets Authority (CMA) has found that Diebold’s acquisition of Wincor may reduce competition in the supply of customer-operated cashpoints in the UK.
While suggesting various remedial measures to offset a decline in competition for the supply of ATMs in the UK, the British anti-trust watchdog said that $1.8bn merger may leave only NCR as a reliable competitor.
The CMA investigators said that there is no possibility that any other company will foray into the market soon, so the merger could lead to higher prices and perhaps a loss of quality.
The CMA team recommended that Diebold Nixdorf should dispose of certain assets tied to its ATM business in the UK.
Alternatively, Diebold should agree to supply some services or facilities to another company, which would allow that company to compete in the UK's ATM market.
Announcing the findings, CMA inquiry chair Martin Cave said: “That NCR is the only other substantial UK supplier of ATMs was a significant factor that underpinned the CMA’s investigation.
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“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."
Responding to the ruling, Diebold Nixdorf said: "Diebold Nixdorf is pleased that the CMA has not called into question the global transaction and integration of the businesses outside the UK, and that any remedies required to preserve competition in the UK will involve the least costly and intrusive remedies needed.
“Diebold Nixdorf is also pleased that the CMA is committed to continue working with the company and that the CMA will consider both behavioral and structural remedies to address and resolve their review as expediently as possible. The process is expected to be completed during the first half of 2017."