The Competition and Markets Authority is to investigate the merger between platform Nucleus and SIPP provider Curtis Banks.
The CMA announced today it would probe the merger of the the Nucleus platform and SIPP and SSAS firm Curtis Banks.
The intervention effectively puts the merger on hold until the CMA makes its decision.
It is not clear why the CMA has intervened seven months after the original deal was announced.
The merger inquiry was launched today because of concerns the combination of the two firms could damage competition.
The initial invitation to comment will run from today until 2 August.
The deadline for a decision on phase 1 of the inquiry will be 14 September.
In a statement today the CMA said: “The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, 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.”
The CMA is inviting comments from any interested party.
The CMA is intervening under Section 96(2A) of the Enterprise Act 2002.
Platform firm Nucleus announced in January it would buy SIPP and SSAS provider Curtis Banks for £242m in an agreed cash offer. Curtis Banks directors have recommended the all-cash deal to shareholders.
Curtis Banks is one of the UK’s biggest SIPP and SSA firms.
Nucleus says the combination of the Nucleus Group and the Curtis Banks Group will create a, “leading retirement-focused adviser platform” with approximately £80bn in assets under administration.
• This is a developing story – please check back later for updates and reaction.
