The Office of Fair Trading (OFT) is investigating whether the merger of adviser technology provider Avelo and Australian data and software provider IRESS is hindering competition in the market.
The competition authority issued an 'invitation to comment' today seeking representations on whether the deal, announced in August this year, would "result in a substantial lessening of competition" in the sector, which comprises activities auxiliary to financial services, except insurance and pension funding.
IRESS acquired Avelo in September for £210m, saying the deal marked its strategy of further developing and consolidating its foothold in the UK after entering the market in November 2011.
At the end of October IRESS announced that it would bring Avelo under its own brand from 1 November.
The OFT said in a statement: "The Office of Fair Trading is considering whether arrangements are in progress or in contemplation which, 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."
The OFT consultation will close on 03 December.
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