Experian's Acquisition of Credit Data Solutions Unopposed by ACCC

ACCC Announcement

The Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose the acquisition of Credit Data Solutions Pty Ltd (illion) by Experian Australia Credit Services Pty Ltd (Experian).

Background

On April 4, 2024, Experian announced its intent to acquire 100% of the shares in Credit Data Solutions, a leading provider of credit reporting and analytics services in Australia and New Zealand.

ACCC Review

The ACCC conducted a review of the proposed acquisition to assess its potential impact on competition in the Australian credit reporting market.

The ACCC considered the following factors in its review:

• The market shares of Experian and Credit Data Solutions
• The level of competition in the credit reporting market
• The potential impact of the acquisition on innovation and investment in the market
• The potential impact of the acquisition on consumers

ACCC Decision

After considering these factors, the ACCC concluded that the proposed acquisition is unlikely to substantially lessen competition in the Australian credit reporting market.

The ACCC's decision is based on the following findings:

• Experian and Credit Data Solutions are not close competitors, and the acquisition is unlikely to result in a significant increase in market concentration.
• The credit reporting market is highly competitive, with several other major players, including Equifax and Dun & Bradstreet.
• The acquisition is unlikely to have a significant impact on innovation or investment in the market, as both Experian and Credit Data Solutions have strong track records of innovation.
• The acquisition is unlikely to have a negative impact on consumers, as it is likely to lead to increased competition and lower prices in the long run.

Next Steps

The ACCC's decision is not a final approval of the acquisition. The acquisition is still subject to approval from the Foreign Investment Review Board (FIRB).

If the FIRB approves the acquisition, it is expected to be completed in the second half of 2024.