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Britain orders in-depth review of PayPal-iZettle deal

Reuters 

(Reuters) - Britain's competition watchdog on Wednesday ordered an in-depth investigation of Holdings Inc's $2.2 billion takeover of Swedish iZettle, saying the U.S. group had not done enough to address its concerns.

The (CMA) said had not resolved concerns about how the deal, PayPal's biggest ever, could hurt competition and lead to higher prices, or a lower quality service, for customers in the UK market.

The regulator has also flagged concerns the merger could damage competition in the emerging market for "omni-channel" payment services, or single that can work across all sales channels and devices.

is working with the CMA and is committed to demonstrating the market is, and will remain, competitive, a said.

The acquisition, which would allow the U.S. to expand into the business in international markets, closed in September.

The deal will now be examined by a CMA-appointed inquiry body, with a final decision due by May 21, the CMA said.

PayPal feels the chances of getting the merger cleared by the inquiry panel are "very good", a source familiar with the matter said.

Founded in 2010, is one of the largest fintech start-ups to emerge from Europe, and one of a string of successful venture-backed companies to emerge from in the past decade or more.

(Reporting by and in Bengaluru; Editing by and Mark Potter)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 05 2018. 19:22 IST
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