The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of Ingenico by Worldline, both active in the payment services sector.
The Commission found that the combination of Worldline and Ingenico's merchant acquiring businesses would raise competition concerns in Belgium, Luxembourg and Austria.
Worldline is already the largest player in each of these Member States. The Commission's investigation revealed that Ingenico is an important competitor while a limited number of credible competitors would remain in these markets following the transaction.
Similarly, Ingenico represents an important alternative to Worldline, the leader in POS provision and management in Austria and Belgium.
The Commission was therefore concerned that the transaction would create or strengthen a dominant position in these markets and so would harm competition and lead to higher prices and less choice.
To address the Commission's competition concerns, the companies offered to divest certain businesses active in POS merchant acquiring and POS terminal provision and management. Notably, the divestment consists of
- Ingenico's Austrian POS merchant acquiring and POS provision and management
usiness;
- Ingenico's Belgian POS merchant acquiring business that includes the
rovision and management of POS terminals; and
- a part of Worldline's merchant acquiring business in Luxembourg.
The package also includes, for each of Austria, Belgium and Luxembourg, the support services necessary to operate the businesses.
The Commission concluded that the proposed transaction, as modified by the commitments, no longer raises competition concerns.
Worldline S.A., headquartered in France, is active in the payment and transactional services industry. It is present throughout the EEA and in emerging markets such as India, China and certain countries in Asia and Latin America.
Ingenico Group S.A., headquartered in France, is mainly engaged in the design and supply of POS terminals (hardware and related software) and also provides payment-related services such as merchant acquiring services as well as other services for in-store and online payments. It is active worldwide with operations in 170 countries. ■