Experian share price dips as group scraps ClearScore acquisition

Shares in Experian (LON:EXPN) have fallen into the red in London in today’s session as the company announced that it was abandoning its acquisition of rival ClearScore. The move came after the Competition and Markets Authority (CMA) said in November that it had provisionally found that the proposed deal may be expected to result in a substantial lessening of competition within the supply of credit comparison platforms for loans and credit cards, and the supply of credit checking tools in the UK.

As of 10:21 GMT, Experian’s share price had given up 1.12 percent to 1,986.50p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.89 percent lower at 7,087.82 points. The group’s shares have added more than 27 percent to their value over the past year, as compared with about a 2.6-percent dip in the Footsie.

Experian drops ClearScore deal

Experian announced in a short statement this morning that following the CMA’s provisional findings in November, and the company’s subsequent interaction with the watchdog, the group did not believe that the CMA would approve its proposed tie-up with ClearScore on satisfactory terms.

“Experian and ClearScore’s shareholders have therefore taken the decision to abandon the proposed transaction,” the FTSE 100 group said in the statement, adding that over the next few years it was planning to bring innovations to market, “while also investing in new areas to further broaden our offering”.

Analysts on FTSE 100 group

As of February 23, the consensus forecast amongst 16 polled investment analysts covering Experian for the Financial Times has it that the company will outperform the market. According to MarketBeat, the blue-chip credit checker currently has a consensus ‘buy’ rating and an average price target of 1,981p.

As of 10:49 GMT, Wednesday, 27 February, Experian plc share price is 1,986.50p.