JOHANNESBURG - The Competition Commission has approved the proposed merger of Experian SA and the Credit Services Holdings, formerly Compuscan Holding.
Experian intends to acquire CSH Group. The commission imposed a number of conditions on the merger, because the transaction was likely to result in substantial lessening of competition in the market for the provision of consumer credit services and also raised public interest concerns. The merger is between the second and third largest players in the market.
Post-merger two significant players will remain in the market, namely TransUnion and the merged entity. The commission required the merging parties to support new entrants.
“One of the conditions is that Experian must provide technical support and set up a technical support fund that will empower smaller bureau to be able to provide consumer credit services to banks,” the commission said. The commission imposed a 36 months’ retrenchments moratorium on the merged entity.