The Competition and Markets Authority is investigating the £242mn acquisition of Sipp provider Curtis Banks by Nucleus.
The CMA announced the launch of its merger inquiry today (July 19).
FTAdviser understands Nucleus referred the deal to the CMA itself because it is often better for companies to involve the CMA earlier and have regulatory approvals running concurrently.
It is expected the acquisition will complete in the third quarter of 2023 after shareholder approval was received in February.
The CMA said it has launched the review to understand whether the merger could reduce the amount of competition.
It stated: “The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
A spokesperson for Nucleus said: "We remain excited about our proposed acquisition of Curtis Banks and welcome today's update from the CMA. We continue to collaboratively engage with the regulators as the conditions of the transaction are processed."
The CMA has invited comments on the transaction from any interested party by the deadline August 2, 2023.
In January Nucleus confirmed it would buy Curtis Banks in a £242mn cash deal, taking its assets under administration to £80bn.
Nucleus purchased Curtis Banks through a new, wholly-owned subsidiary called Nucleus Clyde Acquisition Limited, shortened to 'Bidco', which was incorporated at the end of last year.
amy.austin@ft.com
