Watchdog approves Mastercard’s £700m takeover of payment firm VocaLink

THE COMPETITION watchdog has approved Mastercard’s £700m takeover of UK-based payment processor VocaLink, saying the companies have addressed antitrust concerns.

The ruling follows a formal consultation undertaken by the Competition and Markets Authority (CMA). Its inquiry concluded that the package of measures offered by the two firms was “sufficient” and no longer required an “in-depth merger investigation”.

The two companies set out a number of proposals, including VocaLink making its connectivity infrastructure available to a new supplier of infrastructure services to the LINK network of cash machines.

Mastercard has also pledged to “contribute to the cost” of LINK members having to switch to a new supplier.

The CMA had feared that the acquisition would give MasterCard too much of an advantage when it comes to bidding for contracts in the provision of infrastructure services to Link, which accounts for 70,000 cash machines across the UK and Europe.

Now that the regulatory review has wrapped up, Mastercard said it will be working to close the deal within the next few weeks although it would not commit to a firm timetable.

Mastercard’s chief product officer Michael Miebach said: “Adding bank account-based payments alongside our card network extends what we can do and how we can do it.

“Together, we’ll be one partner to meet all payment needs of businesses, governments and consumers.”

VocaLink, which is headquartered in London, says it processes more than 90 per cent of salaries in the UK, as well as 70 per cent of household bills and “almost all state benefits”.

Its LINK network connects more than 70,000 cash machines around the country.

Mastercard employs more than 10,000 people across the globe.