Crowdfunders' Merger Plan Runs Into UK Antitrust Concerns
Law360, London (March 24, 2021, 4:31 PM GMT) -- Britain's antitrust watchdog said on Wednesday that it is likely to block a merger between the country's two largest equity crowdfunding platforms over competition concerns.
The proposed tie-up between Crowdcube Ltd. and Seedrs Ltd. would mean the combined company had control of 90% of the market, the Competition and Markets Authority said.
The two companies announced a merger in October last year, saying the deal would "further democratize investment" and create the world's largest private equity marketplace. Both companies use a similar platform for smaller businesses to raise capital from investors through the sale of securities.
When the deal was announced, they...
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