Regulator steps in as half of UK cash machines head for one owner
Key Points
- Brink's and NCR Atleos operate over 50% of UK cash machines.
- The CMA warned the merger could mean higher ATM fees.
- Brink's offered to sell NoteMachine and TestLink's UK business.
- The CMA will consult on the remedies and assess potential buyers.
- Accepted undertakings would see the deal conditionally cleared.
The Competition and Markets Authority (CMA) is considering Brink’s offer to sell two UK businesses.
Brink’s and NCR Atleos together operate over 50% of all cash machines in the UK, the CMA said following its phase 1 investigation into the proposed merger.
The regulator warned that the deal could reduce competition in the operation and maintenance of ATMs, leaving the combined business as a very strong market leader with limited competition from rivals.
Without remedies, the CMA said businesses that host ATMs on their premises could face fewer options, and people who rely on the machines to access cash could ultimately pay higher fees.
Brink’s has offered to sell NoteMachine, its UK-based business that provides ATM and cash management services. It has also offered to sell the UK business of TestLink, which supplies spare parts for cash machines.
Both companies accepted that the deal raised competition concerns before the CMA opened its formal investigation. The CMA said their swift engagement and early remedy proposals helped it reach a decision well ahead of the statutory deadline.
“Cash machines remain an important way for many people and businesses to access money and wider banking services, so it is vital that competition is protected,” said Elie Yoo, Senior Director of Mergers at the CMA.
“Both businesses accepted early on that this deal raised competition concerns and Brink’s has now offered to sell two of its businesses to remedy this. We will consult on these proposals before deciding whether they resolve our concerns,” Yoo added.
The CMA has provisionally found that the remedies could address its concerns and will now examine them in more detail. It will seek feedback from third parties and consider potential buyers for the two businesses.
If the regulator is satisfied with the undertakings, it will conditionally clear the merger under the Enterprise Act 2002 without referring it to an in-depth phase 2 investigation. The undertakings would then become legally binding on Brink’s.
