The UK Competition and Markets Authority raised competition concerns over Brink’s agreed $6.6 billion acquisition of NCR Atleos. Its Phase 1 decision found a realistic prospect that the deal could substantially lessen competition in parts of the UK automated-teller-machine market. The regulator gave the companies until 7 October to offer acceptable undertakings. Without acceptable undertakings, the CMA will refer the deal for an in-depth Phase 2 investigation.
The CMA focused on ATM deployment and operation and on second-line maintenance services. The parties' own analysis, which the CMA accepted as a reasonable approach, identified 122 local overlap areas where the merger could raise concerns. The regulator said the combined business would become the UK’s largest ATM deployer by some margin. The CMA also found the merged business would hold a very strong leading position in second-line maintenance services for ATMs.
BRINK’S PROPOSED SALES OF TWO UK BUSINESSES
Brink’s said it had agreed to propose the divestiture of its NoteMachine/TestLink UK business, adding that the sale process was progressing and several prospective buyers had expressed strong preliminary interest. According to the CMA, Brink’s operates in the UK primarily through NoteMachine and NCR Atleos through its Cardtronics business. Brink’s said the potential sale had been contemplated in its previously disclosed financial metrics and did not affect its expected $200 million in annual run-rate cost synergies.
The company maintained its target of closing the acquisition early in the first quarter of 2027.
THE REMEDIES DEADLINE IS THE NEXT TEST
The parties had formally conceded that the test for a Phase 2 reference was met and asked for the case to be fast-tracked to the consideration of undertakings. The companies can offer undertakings designed to resolve the identified competition problems without a deeper investigation. The CMA will decide whether any undertakings offered are sufficient to remedy its concerns to the Phase 1 standard.
The immediate milestone is the 7 October deadline for undertakings.