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HomeNEWSProposed Ingenico acquisition of Paymark hits a snag

Proposed Ingenico acquisition of Paymark hits a snag

The Commerce Commission has concerns about potential competition issues that may arise from the proposed merger between Paymark and French payments group Ingenico. The deal was proposed in January this year and has been working its way through regulatory consents.

Paymark currently services all major card issuers and over 140,000 Eftpos terminals via more than 80,000 merchants. Three quarters of all transactions in New Zealand are processed by Paymark’s core switch.

Ingenico currently supplies payments terminals to the New Zealand market. It’s headquartered in Paris and employs around 7,500 people.

The Commerce Commission will only give clearance to the merger once it’s satisfied this will not have the effect of substantially lessening market competition in New Zealand. It released a statement of preliminary issues in April which outlined some issues, including whether the proposed merger will raise vertical effects, which may increase the post-merger Paymark’s ability to foreclose its rivals.

The Commerce Commission has today sent a letter of issues to Ingenico outlining that, at this stage, the Commission is “not satisfied that the acquisition would not be likely to have the effect of substantially lessening competition.”

You can read the letter on the commission’s website here. Interested parties can make submissions on the issues outlined in the letter if they contact the Commerce Commission before July 25.

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