DBD Diebold Nixdorf Incorporated

By Ian Walker

LONDON--The U.K. Competition and Markets Authority said Friday that the completed $1.8 billion acquisition by U.S.-based cashpoint supplier Diebold Inc. (DBD) of its German peer Wincor Nixdorf AG (WIN.XE) may lessen competition in the U.K., and is asking Diebold to offer a solution to address its concerns.

The U.K. regulator said the companies compete closely in the supply of customer-operated ATMs in the U.K. with only one other credible competitor and limited prospect of other companies entering the U.K. market in the near future.

Diebold has until Aug. 26 to offer proposals to resolve the issues. However, if none are offered, or those given don't satisfy the CMA's concerns it will refer the merger for an in-depth Phase 2 investigation.

"This merger would reduce the number of credible competitors in the market from three to two. 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," Sheldon Mills, senior director of mergers, and the decision maker in this case, said.

"These concerns warrant an in-depth investigation which we will start shortly, unless the companies can offer undertakings to address these concerns," she added.

Diebold agreed to buy Wincor Nixdorf in a cash and share deal last November and the deal completed on Monday.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

August 19, 2016 02:59 ET (06:59 GMT)

Diebold Nixdorf (NYSE:DBD)
Historical Stock Chart
From Mar 2024 to Apr 2024

Diebold Nixdorf (NYSE:DBD)
Historical Stock Chart
From Apr 2023 to Apr 2024