Mortgage Brain pulls out of merger deal
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Mortgage Brain has confirmed that it won’t be progressing with the proposed acquisition of rival sourcing system TrigoldCrystal.
Following a three month review process, the Office for Fair Trading announced last week that it has referred the proposed acquisition to the Competition Commission, which will carry out a further investigation and make its report by September 1, 2011.
But Mark Lofthouse, CEO of Mortgage Brain, says although the acquisition of TrigoldCrystal would have brought benefits to the intermediary mortgage market, it doesn’t feel it is in the best interests of everyone involved to progress.
He says: “Referral cases like these are designed for large companies and we feel our time and resources will be better served continuing to invest in delivering the best products and services to intermediaries.
“During the market downturn Mortgage Brain maintained its program to deliver innovation through investment and this will continue in the years to come.
“In the last year Mortgage Brain has not only increased market share across all major products but overall user numbers and usage has increased, which is a fantastic achievement in prevailing market conditions.”
Mortgage Brain revealed last December that it was in discussions with the board of TrigoldCrystal and had agreed terms to buy the business for £6.8m.
Mortgage Strategy revealed this week that Mortgage Brain was considering retracting its offer for TrigoldCrystal.
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