OFT sets decision date for Mortgage Brain and TrigoldCrystal merger
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The Office of Fair Trading has asked for feedback on the proposed Mortgage Brain acquisition of TrigoldCrystal and says it will make a decision by March 8.
Mortgage Brain revealed in December that it is in discussions with the board of TrigoldCrystal and has agreed terms to buy the business for £6.8m.
The OFT is looking at whether the acquisition would create a lack of competition in the mortgage sourcing market.
In a statement, the OFT says it 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.
It adds “Should it be found to be a relevant merger situation, the OFT will further consider 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 that warrants reference to the Competition Commission for investigation and report.”
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Readers' comments (4)
Dazed & Confused | 13 Jan 2011 12:38 pm
"The OFT is looking at whether the acquisition would create a lack of competition in the mortgage sourcing market."
So, there are honestly people in the OFT who are actually considering whether or not the lack of competition in having one or two mortgage sourcing systems, will make one iota of difference in todays market place?
I rest my case, the lunatics have finally taken over the asylum!
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Kevin friend | 13 Jan 2011 5:59 pm
I think the OFT should consider what both companies do. Mortgage sourcing is what Trigold and MBL cut their teeth on! Not what the businesses are today. They are technology providers to the FS sector. Crystal added a new dimension to this merger. the opportunity exists for there to be a fulfilment of Marty's dream. A common trading platform, one which sets standards and ensures both lenders and broker alike operate in a way which will benefit consumers and keep the FSA happy!
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Anonymous | 14 Jan 2011 10:11 am
Dazed and Confused - I think you need to be aware of the contents and requirements placed on the OFT by the Enterprise Act 2002.
Just because you think a merger would not make a difference in today's market, it doesn't mean that the OFT can then ignore the stringent requirements placed upon them by the Act.
A paraleel would be that the FSA ignore some of the requirements placed upon them by FSMA.
I think Anarchy would be a good word to use here! Then, the lunatics will truly have taken over the asylum!!
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Anonymous | 26 Jan 2011 9:03 pm
I think what needs to be considered is that if people are not happy with the service at MB or TC, where do they go when the companies merge?
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